Black Knight: Past-Due Mortgages Approach Recent Record Lows
Serious Delinquencies Continue Improvement; Prepayments See Seasonal Rise
- Reversing much pf April’s calendar-driven spike, the national delinquency rate fell 11 basis points (bps) in May to hit 3.10% – the lowest it’s been other than March 2023’s record of 2.92%
- The number of borrowers a single payment past due improved by 94K (-9.5%), erasing nearly half of the prior month’s increase
- Serious delinquencies (loans 90 or more days past due) continued to improve nationally – falling by 18K (-3.7%) from April, putting the population of such loans down more than 200K (nearly 30%) since May 2022
- Though foreclosure starts increased to 25.4K for the month (+2.2%), they remain near April’s 6-month low and 41% % below the same period in 2019, the last comparable May before the pandemic
- Foreclosure actions were started on 5.1% of serious delinquencies in May, up only marginally from April and still more than a full percentage point below the March 2020 rate at the start of the pandemic
- The number of loans in active foreclosure improved by 4K in the month and is now down 41K (-15%) from March 2020, with foreclosure sales (completions) rising 5.5% from April to 6.8K
- Prepayment activity rose to a 0.54% single-month mortality (SMM) rate – the highest level seen since September 2022, despite interest rates in the 6.7% range – but is still down 40% from May of 2022
Black Knight, Inc. reports the following “first look” at May 2023 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.10%
Month-over-month change: -6.25%
Year-over-year change: -2.62%
Total U.S. foreclosure pre-sale inventory rate: 0.43%
Month-over-month change: -2.03%
Year-over-year change: 2.02%
Total U.S. foreclosure starts: 25,400
Month-over-month change 2.16%
Year-over-year change: -4.39%
Monthly prepayment rate (SMM): 0.54%
Month-over-month change: 23.12%
Year-over-year change: -40.11%
Foreclosure sales: 6,800
Month-over-month change: 5.50%
Year-over-year change: 18.95%
Number of properties that are 30 or more days past due, but not in foreclosure: 1,639,000
Month-over-month change: -107,000
Year-over-year change: -20,000
Number of properties that are 90 or more days past due, but not in foreclosure: 483,000
Month-over-month change: -18,000
Year-over-year change: -203,000
Number of properties in foreclosure pre-sale inventory: 229,000
Month-over-month change: -4,000
Year-over-year change: 8,000
Number of properties that are 30 or more days past due or in foreclosure: 1,868,000
Month-over-month change: -112,000
Year-over-year change: -13,000
Top 5 States by Non-Current* Percentage
Mississippi: 7.34%
Louisiana: 6.78%
Alabama: 5.33%
West Virginia 4.87%
Pennsylvania: 4.84%
Bottom 5 States by Non-Current* Percentage
Oregon: 2.09%
Montana: 2.02%
Idaho: 2.01%
Colorado: 1.96%
Washington: 1.92%
Top 5 States by 90+ Days Delinquent Percentage
Mississippi: 2.21%
Louisiana: 1.81%
Alabama: 1.55%
Arkansas: 1.34%
Georgia: 1.23%
Top 5 States by 12-Month Change in Non-Current* Percentage
Alaska: -24.21%
Connecticut: -15.19%
Vermont: -12.33%
New York: -11.87%
North Dakota: -10.76%
Bottom 5 States by 12-Month Change in Non-Current* Percentage
Idaho: 14.44%
Utah: 6.09%
Arizona 5.84%
Michigan: 5.62%
Georgia: 3.35%
SOURCE Black Knight, Inc.
