The U.S. mortgage delinquency rate dropped to 3.10% in May, a decrease of 6.25% compared with April and down 2.62% compared with May 2022, according to Black Knight’s First Look report.
The 11 basis point drop reversed the spike seen in April.
About 1.6 million loans were 30 days or more past due but not in foreclosure, a decrease of about 107,000 compared with the previous month and down about 20,000 compared with a year earlier, according to the report.
About 483,000 loans were seriously delinquent (90 days or more past due but not in foreclosure), down about 18,000 compared with April and down about 203,000 compared with May 2022.
The foreclosure pre-sale inventory rate inventory rate was 0.43%, a decrease of 2.03% compared with the previous month but up 2.02% compared with a year earlier.
As of the end of May there were about 229,000 properties in the foreclosure pre-sale inventory, a decrease of 4,000 compared with April but up about 8,000 compared with May 2022.
There were about 25,400 foreclosure starts in May, up 2.16% compared what the month prior but down 4.39% compared with a year ago.
There were roughly 6,800 foreclosure sales in May, up 5.5% compared with April and up 18.95% compared with May 2022.
Prepayment activity rose to a 0.54% single-month mortality (SMM) rate – the highest level seen since September 2022, despite interest rates in the 6.7% range – but is still down 40% from May 2022.
Photo: Behnam Norouzi
