Mortgage delinquencies continued to drop during October, falling to just 3.74% of all loans, according to Black Knight’s First Look report.
That’s a decrease of 4.25% compared with September and down a whopping 42% compared with October 2020. However, serious delinquencies remain elevated and, as pandemic-related forbearance plans expire, it is expected that foreclosures will rise.
In fact, foreclosure starts ticked up slightly in October, rising 2.56% compared with September, according to Black Knight’s data.
Still, foreclosure starts were down 15% compared with October 2020.
The foreclosure pre-sale inventory rate was 0.26%, up slightly compared with the previous month but down 22% compared with a year earlier.
As of the end of the month, there were about 138,000 homes in the foreclosure pre-sale inventory, up 3,000 compared with September but down about 40,000 compared with a year earlier.
As of the end of October, about 2 million mortgages were in some stage of delinquency (30 days or more past due but not in foreclosure), down about 82,000 compared with September and down about 1.45 million compared with October 2020.
Serious delinquencies (90 days or more past due but not in foreclosure) stood at 1.1 million, down 127,000 compared with the previous month and down 1.15 million compared with October 2020.
Image: Behnam Norouzi
