Prepayments at 3-year high, delinquencies recover from spike

by Steve Randall23 Aug 2019

A first look at mortgage performance data for last month shows some strong results.

Black Knight’s report shows that prepayment activity was the highest it’s been since July 2016 at 1.43%, that’s up almost 26% from June and up more than 58% from July 2018.

Meanwhile, the national delinquency rate fell by 7% in July to 3.46%, offsetting the bulk of June's calendar-related spike and the lowest rate on record (back to 2000).

Serious delinquencies (all loans 90 or more days delinquent but not in active foreclosure) were down 11,000 to 444,000; it was the first time since June 2006 that serious delinquencies fell below 445K.

Active foreclosure inventory fell as well, by 1,000 to 258,000.

Overall, the number of properties that are 30 or more days past due or in foreclosure totaled 2,065,000, that’s a drop of 144,000 month-over-month and a drop of 89,000 from a year ago.

Top 5 States by Non-Current* Percentage

Mississippi:

10.36%

Louisiana:

7.82%

Alabama:

6.80%

West Virginia:

6.35%

Arkansas:

5.96%

Bottom 5 States by Non-Current* Percentage

California:

2.11%

Idaho:

2.10%

Washington:

1.97%

Oregon:

1.92%

Colorado:

1.82%

 

Top 5 States by 90+ Days Delinquent Percentage

Mississippi:

3.14%

Alabama:

1.91%

Louisiana:

1.88%

Arkansas:

1.74%

West Virginia:

1.28%

 

Top 5 States by 6-Month Improvement in Non-Current* Percentage

District of Columbia:

-33.55%

Illinois:

-16.51%

California:

-14.43%

Hawaii:

-11.89%

Florida:

-11.63%

 

Top 5 States by 6-Month Deterioration in Non-Current* Percentage

Montana:

3.43%

South Dakota:

2.68%

Mississippi:

2.52%

Alabama:

0.68%

Utah:

0.57%

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.


More market update: