Mortgage Delinquencies Hover at Record Lows as Homeowners Stay and Pay


The U.S. mortgage delinquency rate increased to 3.21% as of the end of July – a hike of 2.89% compared with June but down 3.56% compared with July 2022, according to Black Knight’s most recent First Look report.

As of the end of July, about 1.7 million properties were 30 days or more post due but not in foreclosure, according to the software and analytics firm’s data. That’s an increase of about 49,000 compared with the previous month but down about 39,000 compared with a year earlier.

Although the national delinquency rate edged up 9 basis points in July, it was down 12 basis points year over year and remains within 12 basis points of March’s record low.

About 468,000 properties were seriously delinquent, or 90 days or more past due but not in foreclosure, down about 3,000 compared with June and down about 161,000 compared with July 2022.

Serious delinquencies are now at the lowest level since the pre-Great Financial Crisis housing market peak, Black Knight says.

The foreclosure pre-sale inventory rate for July was 0.42% – down 1.97% month over month and down 3.22% year over year.

There were about 26,300 foreclosure starts in July – down about 6% compared with the previous month but up 15% compared with a year ago.

Loans in active foreclosure fell to 220,000 – the fewest since just after the end of federal foreclosure moratoria – and remain down 63,000 (-22%) from February 2020, prior to the pandemic.

Prepayment activity fell under easing seasonal home buying pressure along with interest rates briefly rising above 7% and ending July at 6.88%, with prepayments still down 28% from July 2022.

Photo: Bruce Mars

Notify of
Inline Feedbacks
View all comments