The total U.S. mortgage delinquency rate fell to 3.73% in March – down 13.24% compared with February but up 3.09% compared with March 2017, according to Black Knight’s First Look report.
Most of the month-over-month decrease can be attributed to homeowners in Texas, Florida and Puerto Rico getting “back on track” with their mortgage payments following the impact of hurricanes Harvey, Irma and Maria this past fall.
Still, there were some lingering effects from the storms on the total delinquency rate, contributing to the 3.09% year-over-year increase.
About 1.9 million properties were 30 days or more past due (but not in foreclosure) in March, a decrease of about 286,000 compared with February but up 81,000 compared with March 2017.
About 632,000 properties were seriously delinquent (90 days or more past due, but not in foreclosure), a decrease of about 65,000 compared with February but an increase of about 43,000 compared with March 2017.
The total U.S. foreclosure pre-sale inventory rate was 0.63%, down 3.21% compared with the previous month and down 29.29% compared with a year earlier. Black Knight says it was the lowest foreclosure inventory rate since late 2006.
There were about 52,100 foreclosure starts in March, an increase of 11.56% compared with the previous month but down 13.60% compared with a year earlier. Most of the month-over-month increase in foreclosure starts can likely be contributed to the conclusion of storm-related moratoria.
The monthly prepayment rate was 0.88%, an increase of 22.04% compared with February but a decrease of 9.08% compared with March 2017. Black Knight notes that this increase in prepayment activity came despite interest rates remaining above 4.4%.
