Prepayment activity at highest level in 6+ years says Black Knight

by Steve Randall25 Nov 2019

Low interest rates have boosted the number of homeowners refinancing and led to a 134% year-over-year surge in prepays.

Black Knight has published its ‘First Look’ mortgage performance data for October which shows a monthly prepayment rate of 1.81%, up 16.41% from September and the highest level since May 2013.

However, the slight increase in the average 30-year mortgage rate recently along with the seasonal slowdown in home sales may result in the prepay rate declining in the months ahead.

Meanwhile, the national delinquency rate fell to 3.39% in October, a 6.92% decline from last year, down 3.82% from September, and within 0.03% of the record low set in May 2019.

There were 1,786,000 homes 30+ days past due but not in foreclosure, 68,000 fewer than in September and down 98,000 year-over-year.

The number of serious delinquencies (90+ days past due but not in foreclosure) fell 10,000 month-over-month and 66,000 year-over-year to 433,000 -  a more than 14-year low.

Foreclosures pre-sale inventory
The number of properties in the foreclosure pre-sale inventory was 255,000 in October, up 3,000 from September but down 12,000 year-over-year.

The number of properties 30+ days past due or in foreclosure fell 65,000 month-over-month and 111,000 year-over-year to 2,041,000.

Mississippi lead the states by non-current percentage (10.18%) while Colorado has the lowest share at 1.73%.  

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