There were about 33,000 foreclosure starts in October, an increase of 30.43% compared with September and an increase of 32.85% compared with October 2022, according to ICE Mortgage Technology’s First Look report.
That’s the highest number of foreclosure starts in 18 months.
Meanwhile, the U.S. mortgage delinquency rate fell to 3.26% of all loans in October, down about 1% compared with September and down 2.81% compared with October 2022.
It was the first time in five months that delinquencies fell on a month-over-month basis.
As of the end of the month, about 1.734 million properties were 30 or more days past due, but not in foreclosure, a decrease of about 15,000 compared with the previous month and a decrease of about 22,000 compared with a year earlier.
About 447,000 properties were seriously delinquent – 90 or more days past due, but not in foreclosure – down about 8,000 compared with the previous month, and down about 135,000 a year earlier.
Once again, serious delinquencies hit their lowest levels since 2006, ICE Mortgage Technology notes in the report.
The total U.S. foreclosure pre-sale inventory rate was 0.41%, an increase of 1.17% compared with September, but down 6.13% compared with October 2022.
As of the end of the month there were about 217,000 properties in the foreclosure pre-sale inventory, an increase of about 3,000 compared with September but a decrease off about 11,000 compared with October 2022.
There were about 6,400 foreclosure sales, up only slightly month-over-month and year-over-year.
The monthly prepayment rate stood at 0.43%, down 3.4% compared with the month prior and down 13% compared with a year earlier.
While foreclosure starts rose in October, near term risk remains muted, with serious delinquencies historically low and more than 70% of such loans protected from foreclosure by loss mitigation efforts, ICE notes in the report.
Photo: Alexander Grey
