As was expected due to the COVID-19 crisis, the U.S. mortgage delinquency rate jumped 20% in May compared with April and was up 131% compared with May 2019, according to Black Knight’s First Look report.
As of the end of the month about 7.76% of all mortgages were 30 days or more past due.
That’s about 4.1 million mortgages – an increase of about 723,000 compared with April and an increase of about 2.4 million compared with May 2019.
Serious delinquencies also increased in May. As of the end of the month about 631,000 mortgages were seriously delinquent – or 90 days more more past due but not in foreclosure – an increase of 169,000 compared with April and an increase of 170,000 compared with May 2019.
Meanwhile, the foreclosure pre-sale inventory continued to fall. It was at 0.38%, down 5.80% compared with the previous month and down 22.7% compared with May 2019.
Foreclosure starts were also down. In May, foreclosure proceedings were started on about 5,100 homes, down about 31% compared with the previous month and down about 87% compared with a year earlier.
The monthly prepayment rate – which is impacted by refinance activity – was at 2.29%, down 1.78% compared with April but up 86% compared with May 2019.