Delinquencies steady, prepayments up in June says Black Knight

The rate of mortgage delinquencies held steady at 3.8% in June according to a first look at the month’s mortgage data from Black Knight Financial

Delinquencies steady, prepayments up in June says Black Knight
The rate of mortgage delinquencies held steady at 3.8% in June according to a first look at the month’s mortgage data from Black Knight Financial.

The figures also reveal a rise in prepayment activity by 5.3% as low interest rates helped build on the rise seen in May. Despite the two monthly gains, prepayment rates remain around 20% below a year earlier.

The drop in mortgage delinquencies came despite seasonal pressures and makes a 17% decline in serious delinquencies and active foreclosures for the year so far, that’s a drop of almost 200,000.

Total non-current inventory saw a 3% seasonal rise over Q2 2017, but the inventory of serious delinquencies (loans 90 or more days past due) and active foreclosures fell by 7%.

Total US foreclosure starts were up 1.25% (56,500) while the number of properties that are past 30 days due but not in foreclosure increased by 5,000 to 1.932 million.

By non-current percentage, the top 5 states in June were Mississippi (10.13%), Louisiana (8.64%), Alabama (7.13%), West Virginia (6.8%) and Maine (6.63%). The bottom 5 by non-current percentage were Montana (2.64%), Oregon (2.62%), Minnesota (2.47%), North Dakota (2.23%) and Colorado (2.14%).

The most improved states over 6 months were New Jersey, Florida, Arizona, West Virginia and Nevada. The worst deterioration over 6 months was in Alabama, Montana, South Dakota, Vermont and Alaska.

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