From Black Knight: Mortgage Delinquencies Decline for Fifth Consecutive Month in October; Record-Low Rates Push Prepayment Activity to 16-Year High
• Mortgage delinquencies improved again in October, falling to 6.44%, the lowest level since March
• Despite five consecutive months of improvement, there are still more than 3.4 million delinquent mortgages, nearly twice as many as there were entering the year
• Serious delinquencies – loans 90 or more days past due – improved in October as well, but volumes remain at more than five times (+1.8 million) pre-pandemic levels
• October’s 4,700 foreclosure starts marked a nearly 90% year-over-year reduction as widespread moratoriums remain in place, while active foreclosure inventory set yet another record low at 178,000
• Record-low interest rates again pushed prepayment activity higher, with October’s prepayment rate of 3.17% setting the highest single-month mark in more than 16 years
emphasis added
According to Black Knight’s First Look report, the percent of loans delinquent decreased 3.3% in October compared to September, and increased 90% year-over-year.
The percent of loans in the foreclosure process decreased 1.6% in October and were down 31% over the last year.
Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 6.44% in October, down from 6.66% in September.
The percent of loans in the foreclosure process decreased in October to 0.33%, from 0.34% in September.
The number of delinquent properties, but not in foreclosure, is up 1,651,000 properties year-over-year, and the number of properties in the foreclosure process is down 77,000 properties year-over-year.
| Black Knight: Percent Loans Delinquent and in Foreclosure Process | ||||
|---|---|---|---|---|
| Oct 2020 |
Sept 2020 |
Oct 2019 |
Oct 2018 |
|
| Delinquent | 6.44% | 6.66% | 3.39% | 3.64% |
| In Foreclosure | 0.33% | 0.34% | 0.48% | 0.52% |
| Number of properties: | ||||
| Number of properties that are delinquent, but not in foreclosure: |
3,437,000 | 3,542,000 | 1,786,000 | 1,884,000 |
| Number of properties in foreclosure pre-sale inventory: |
178,000 | 181,000 | 255,000 | 267,000 |
| Total Properties | 3,616,000 | 3,722,000 | 2,041,000 | 2,152,000 |