Mortgage Delinquencies Continued to Fall in May as Prepayments Surged

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The national mortgage delinquency rate fell for a third consecutive month to 3.36% in May, the lowest level since January 2000, according to Black Knight’s First Look report.

About 1.76 million properties were 30 days or more past due, but not in foreclosure, a decrease of about 52,000 compared with April and a decrease of about 107,000 compared with May 2018.

Of those, about 461,000 properties were seriously delinquent, or 90 days or more past due, down about 13,000 compared with the previous month and down about 107,000 compared with a year earlier.

The foreclosure inventory rate was 0.49%, down 1.65% compared with April and down 17.38% compared with May 2018, according to the monthly report.

As of the end of May there were about 255,000 home in the foreclosure inventory, down about 4,000 compared with the previous month and down about 48,000 compared with a year earlier.

There were about 39,000 foreclosure starts in May, down 5.80% compared with April and down 13.14% compared with May 2018.

It was the fewest of any month in more than 18 years

The monthly prepayment rate was 1.23%, an increase of 24.31% compared with the previous month and an increase of 32.17% compared with a year earlier.

Prepayment activity has more than doubled over the past four months to reach its highest level in more than two years, Black Knight reports.

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