Black Knight: “Seriously Delinquent Mortgages Hit Lowest Level Since 2006” in June

From Black Knight: Black Knight’s First Look: Seriously Delinquent Mortgages Hit Lowest Level Since 2006; Prepayments Trended Seasonally Higher in June Despite Elevated Interest Rates

• Inching up 2 basis points from May, the national delinquency rate continues to hover near recent record lows, with June’s marking the third lowest level on record

• The number of serious delinquencies (loans 90+ days past due) dropped to 471K – the lowest since August 2006 – and a 177K (-27%) improvement from June 2022

• Early-stage delinquencies (30-days late) increased by 19K (+2.2%), while borrowers who’ve missed two payments (60-days past due) ticked up by 5K (+1.7%)

• Foreclosure starts also increased slightly to 28K for the month – just 1% above the preceding 12-month average and still 38% below the June 2019’s pre-pandemic level

• Foreclosure was started on 5.8% of serious delinquencies in June, up from 5.1% in May but still three percentage points below the start rate in May 2019 before the onset of the pandemic

• The number of loans in active foreclosure shrunk another 5K in June and is still down 47K (-17%) from March 2020; meanwhile, June’s 6.9K foreclosure sales (completions) marked a 1.5% increase from May
emphasis added

According to Black Knight’s First Look report, the percent of loans delinquent increased 0.55% in June compared to May and decreased 2.8% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.12% in June, down from 3.10% the previous month.

The percent of loans in the foreclosure process decreased in June to 0.42%, from 0.43% the previous month. 
   
The number of delinquent properties, but not in foreclosure, is down 24,000 properties year-over-year, and the number of properties in the foreclosure process is down 5,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  June
2023
May
2023
Delinquent 3.12% 3.10%
In Foreclosure 0.42% 0.43%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
1,650,000 1,639,000
Number of properties
in foreclosure
pre-sale inventory:
224,000 229,000
Total Properties 1,874,000 1,868,000