Black Knight's First Look: Seriously Delinquent Mortgages Hit Lowest Level Since 2006; Prepayments Trended Seasonally Higher in June Despite Elevated Interest Rates
- The national delinquency rate remains near record lows, indicating a stable mortgage market.
- Serious delinquencies dropped to the lowest level since 2006, showing improved loan performance.
- Foreclosure starts increased slightly, suggesting potential challenges in the market.
- Early-stage delinquencies increased slightly, indicating a potential trend of borrowers struggling to make payments.
- 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 still38% below the June 2019's pre-pandemic level - Foreclosure was started on
5.8% of serious delinquencies in June, up from5.1% 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 a1.5% increase from May
Total
Month-over-month change:
Year-over-year change: -
Total
Month-over-month change: -
Year-over-year change: -
Total
Month-over-month change
Year-over-year change: -
Monthly prepayment rate (SMM):
Month-over-month change:
Year-over-year change: -
Foreclosure sales: 6,900
Month-over-month change:
Year-over-year change:
Number of properties that are 30 or more days past due, but not in foreclosure: 1,650,000
Month-over-month change: 11,000
Year-over-year change: -24,000
Number of properties that are 90 or more days past due, but not in foreclosure: 471,000
Month-over-month change: -13,000
Year-over-year change: -177,000
Number of properties in foreclosure pre-sale inventory: 224,000
Month-over-month change: -5,000
Year-over-year change: -5,000
Number of properties that are 30 or more days past due or in foreclosure: 1,874,000
Month-over-month change: 6,000
Year-over-year change: -29,000
Top 5 States by Non-Current* Percentage | |
7.40 % | |
6.84 % | |
5.31 % | |
4.85 % | |
4.84 % | |
Bottom 5 States by Non-Current* Percentage | |
2.15 % | |
2.10 % | |
2.03 % | |
1.94 % | |
1.94 % | |
Top 5 States by 90+ Days Delinquent Percentage | |
2.17 % | |
1.76 % | |
1.52 % | |
1.33 % | |
1.22 % | |
Top 5 States by 12-Month Change in Non-Current* Percentage | |
-23.96 % | |
-13.43 % | |
-13.31 % | |
-12.22 % | |
-11.65 % | |
Bottom 5 States by 12-Month Change in Non-Current* Percentage | |
15.17 % | |
6.10 % | |
4.91 % | |
2.99 % | |
2.66 % | |
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. | |
Notes: | |
1) | Totals are extrapolated based on Black Knight's loan-level database of mortgage assets. |
2) | All whole numbers are rounded to the nearest thousand, except foreclosure starts and sales, which are rounded to the nearest hundred. |
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 Aug. 7, 2023.
For more information about gaining access to Black Knight's loan-level database, please send an email to Mortgage.Monitor@bkfs.com.
About Black Knight
Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serving their customers. For more information on Black Knight, please visit www.blackknightinc.com/.
For more information: | |
Michelle Kersch | Mitch Cohen |
904.854.5043 | 704.890.8158 |
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SOURCE Black Knight, Inc.
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