The monthly prepayment rate surged to its highest level in nearly three years in July, due to rising refinance volume driven by lower mortgage rates, Black Knight’s First Look report shows.
The monthly prepayment rate for July was 1.43% according to the firm’s data, an increase of 25.71% compared with June and a jump of 58.40% compared with July 2018.
The U.S. mortgage delinquency rate continued to fall in July, reaching 3.46%, according to Black Knight’s First Look report.
About 1.807 million homes were in some stage of delinquency, down 7.27% compared with June and down 4.25% compared with July 2018.
About 444,000 homes were seriously delinquent (90 days or more past due but not in foreclosure), a decrease of about 11,000 compared with June and a decrease of about 84,000 compared with July 2018.
The total U.S. foreclosure pre-sale inventory rate for July was 0.49% – a decrease of 0.49% compared with the previous month and down 13.20% compared with a year earlier.
As of the end of the month, there were about 258,000 homes in the pre-sale inventory, down about 1,000 compared with June and down about 35,000 compared with July 2018.
There were about 39,200 foreclosure starts in July, down 2.24% compared with the previous month and down 18.84% compared with July 2018.