The national mortgage delinquency rate edged up to 2.89% in July – driven by a 4% increase in early-stage delinquencies, according to Black Knight’s First Look report.
Still, the mortgage delinquency rate was down 30% compared to July 2021.
As of the end of the month, about 1.543 million loans were 30 days or more past due, an increase of about 32,000 compared with June but down by about 663,000 compared with July 2021.
Serious delinquencies – loans 90 or more days past due but not yet in active foreclosure – pulled back in July after worsening for the first time in 22 months in June.
As of the end of July about 594,000 loans were in serious delinquency, a decrease of about 5,000 compared with the previous month and down about 853,000 compared with a year earlier.
The number of seriously delinquent loans curing to current has dropped steadily over recent months, indicating that the easiest workouts have likely been completed, Black Knight reports.
There were about 17,700 foreclosure starts in July, down 25% compared with June but up 321% compared with July 2021.
Though still up from record lows that came from widespread moratoriums and forbearance protections last year, the number of loans in active foreclosure declined slightly in July.
The pre-sale foreclosure inventory rate was 0.35%, down about 3% compared with June but up about 31% compared with a year ago.
As of the end of the month there about 184,000 properties in the pre-sale foreclosure inventory – down about 6,000 compared with the previous month but up about 44,000 compared with July 2021.
Prepayment activity dropped by another 18% in July and is now down by 67% from the same time last year as rising rates put downward pressure on both purchase and refinance lending.
Photo: Alexander Grey