The national mortgage delinquency rate dropped to 2.92% in March, a decrease of 15% compared with February and a decrease of 13.2% compared with March 2022, according to Black Knight’s First Look report.
It was the first time on record that the national delinquency rate dropped below 3%, Black Knight says.
What’s more, it was the second largest decline in 17 years.
As of the end of March there were roughly 1.539 million residential properties in some stage of delinquency (30 days or more past due but not in foreclosure). That’s down by about 272,000 compared with the previous month and down about 209,000 compared with a year ago.
Roughly 511,000 properties were in serious delinquency (90 days or more past due but not in foreclosure), down 51,000 compared with February and down 331,000 compared with March 2022. That’s the lowest level since March 2020, with volumes shrinking in every state, Black Knight says.
The foreclosure pre-sale inventory rate stood at 0.46%, down slightly compared with February but up 13.2% compared with March 2022.
As of the end of the month, there were about 240,000 homes in the foreclosure pre-sale inventory.
Foreclosure starts jumped 9.0% and short sales increased 4.6% compared with February. However, both still remain well below pre-pandemic volumes at the national level.
There were roughly 32,000 foreclosure starts nationwide in March, according to the report.
The prepayment rate increased to 0.50% in March, as anticipated, due to sale-related prepayments and increased demand for refis due to falling rates.
