Delinquency Rate Fell To 4.77% In October; Foreclosure Starts Down 8.39%

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The total U.S. mortgage delinquency rate was 4.77% in October – a decrease of 1.93% compared with September and a decrease of 11.91% compared with October 2014, according to Black Knight Financial Services' First Look report.

A total of about 2.4 million homeowners were 30 days or more past due – a decrease of about 42,000 compared with September and a decrease of about 316,000 compared with October 2014.

Of those, about 820,000 were seriously delinquent, or 90 days or more past due – an increase of about 3,000 compared with September but a decrease of about 249,000 compared with October of last year.

States with the highest delinquency rates in October included Mississippi (12.48%), New Jersey (10.48%), Louisiana (9.8%), New York (9.06%) and Maine (8.93%).

States with the lowest delinquency rates included South Dakota (3.17%), Minnesota (3.12%), Colorado (2.90%), Alaska (2.50%) and North Dakota (2.12%).

Foreclosure starts for the month reached 73,200, a decrease of 8.39% compared with September and a decrease of 11.27% compared with October 2014.

The total foreclosure presale inventory rate was about 1.43%, a decrease of about 2.35% compared with September and a decrease of about 21.16% compared with October of last year.

There were about 721,000 homes in the foreclosure presale inventory as of October – a decrease of about 16,000 compared with September and a decrease of about 191,000 compared with October of last year.

Prepayment activity – historically a good indicator of refinance activity – was up slightly for the month.

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