The U.S. mortgage delinquency rate continued to fall in April, dropping 7.11% compared with March to reach 4.66% of all loans, according to Black Knight’s First Look report.
That’s a decrease of 27.68% compared with April 2020.
About 2.5 million loans were 30 days or more past due, but not in foreclosure, a drop of about 172,000 compared with March and down about 900,000 compared with April 2020.
Serious delinquencies (90 days or more past due but not in foreclosure) stood at about 1.8 million, which, although a decrease of 151,000 compared with March, was up about 1.3 million compared with April 2020.
Serious delinquencies resulting from the pandemic continue to be a major concern for mortgage servicers. Many of these borrowers are currently in forbearance plans and some may be facing foreclosure after borrower protections end.
The U.S. foreclosure pre-sale inventory rate stood at 0.29%, down 6.29% compared with the previous month and down 28.67% compared with a year earlier. As of the end of April there were about 153,000 homes in the foreclosure inventory – down about 9,000 compared with March and down about 58,000 compared with April 2020.
There were about 3,700 foreclosure starts in April, down 26% compared with the previous m month and down 50% compared with a year earlier.
The monthly prepayment rate was 2.58%, down 22.79% compared with March but up 10.77% compared with April 2020.
Photo: Behnam Norouzi