Mortgage Delinquencies Hit Record Low in March, While Prepayments Rose
- The national delinquency rate dropped 53 basis points (-15%) in March, falling below 3% for the first time on record, ending the month at just 2.92%
- While delinquency rates almost always fall in March – as borrowers utilize tax refunds and other seasonal revenues to pay down past-due debt – the drop marked the second largest decline in the past 17 years
- Factoring in March’s decline, the total number of past-due mortgages (including active foreclosures) has fallen to its lowest level in nearly 23 years, dating all the way back to April 2000
- Serious delinquencies (90+ days past due) showed marked improvement, falling by 51K to their lowest level since March 2020, with volumes shrinking in every state
- Likewise, every state saw overall delinquencies fall in March, with improvements ranging from 11.9% in Washington to 21.5% in Vermont
- Both foreclosure starts (+9.0%) and sales (+4.6%) rose in the month but still remain well below pre-pandemic volumes at the national level
- Active foreclosure inventory held steady, but remains 31K (12%) below March 2020 levels
- The prepayment rate (SMM) rose to 0.50% (+44% month over month) driven, as anticipated, by seasonal tailwinds in sale-related prepayments and an increased demand for refis due to falling rates
Black Knight, Inc. reports the following “first look” at March 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): 2.92%
Month-over-month change: -15.23%
Year-over-year change: -13.23%
Total U.S. foreclosure pre-sale inventory rate: 0.46%
Month-over-month change: -0.21%
Year-over-year change: 13.24%
Total U.S. foreclosure starts: 32,000
Month-over-month change: 9.03%
Year-over-year change: -5.69%
Monthly prepayment rate (SMM): 0.50%
Month-over-month change: 44.42%
Year-over-year change: -61.41%
Foreclosure sales: 7,500
Month-over-month change: 4.59%
Year-over-year change: 24.64%
Number of properties that are 30 or more days past due, but not in foreclosure: 1,539,000
Month-over-month change: -272,000
Year-over-year change: -209,000
Number of properties that are 90 or more days past due, but not in foreclosure: 511,000
Month-over-month change: -51,000
Year-over-year change: -331,000
Number of properties in foreclosure pre-sale inventory: 240,000
Month-over-month change: 0
Year-over-year change: 31,000
Number of properties that are 30 or more days past due or in foreclosure: 1,779,000
Month-over-month change: -272,000
Year-over-year change: -178,000
Top 5 States by Non-Current* Percentage
| Mississippi: | 7.05 % |
| Louisiana: | 6.61 % |
| Alabama: | 5.13 % |
| West Virginia: | 4.55 % |
| Pennsylvania: | 4.53 % |
Bottom 5 States by Non-Current* Percentage
| California: | 2.03 % |
| Montana: | 1.95 % |
| Idaho: | 1.86 % |
| Washington: | 1.83 % |
| Colorado: | 1.80 % |
Top 5 States by 90+ Days Delinquent Percentage
| Mississippi: | 2.36 % |
| Louisiana: | 1.98 % |
| Alabama: | 1.62 % |
| Arkansas: | 1.43 % |
| Georgia: | 1.30 % |
Top 5 States by 12-Month Change in Non-Current* Percentage
| Alaska: | -28.18 % |
| Vermont: | -24.48 % |
| Connecticut: | -21.67 % |
| New Jersey: | -18.90 % |
| New York: | -18.77 % |
Bottom 5 States by 12-Month Change in Non-Current* Percentage
| Idaho: | -0.60 % |
| South Dakota: | -0.93 % |
| Florida: | -4.01 % |
| Michigan: | -4.66 % |
| Utah: | -5.17 % |
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
For more detailed view of this month’s “first look” data, please visit the Black Knight newsroom. The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online at https://www.blackknightinc.com/data-reports/ by May 1, 2023. For more information about gaining access to Black Knight’s loan-level database, please send an email to Mortgage.Monitor@bkfs.com.
