The national mortgage delinquency rate in June hit its lowest level since the onset of the pandemic, falling to 4.37% of all loans, according to Black Knight’s First Look report.
Black Knight notes that delinquencies have now fallen to below their pre-Great Recession average.
Still, more than 1.5 million homeowners are seriously delinquent (90 days or more past due but not in foreclosure) – nearly four times pre-pandemic levels.
As of the end of the month about 2.3 million mortgages were 30 days or more past due but not in foreclosure, a decrease of about 191,000 compared with May and a decrease of about 1.7 million compared with June 2020.
About 1.5 million loans were in serious delinquency (90 days or more past due but not in foreclosure), down about 119,000 compared with the previous month and down about 324,000 compared with a year earlier.
The total foreclosure presale inventory rate stood at 0.27%, down 1.7% compared with the previous month and down 24% compared with June 2020.
As of the end of the month there were about 145,000 homes in the foreclosure presale inventory, down about 3,000 compared with May and down about 47,000 compared with June 2020.
There were about 4,400 foreclosure starts in June, an increase of 15% compared with May but down 25% compared with June 2020.
The monthly pre-payment rate stood at 2.28%, up 6.23% compared with the previous month but down 14% compared with a year earlier.
Recent pullbacks in interest rates resulted in prepayment activity edging upward for the first time in three months, Black Knight says.
Photo: Pierre Bamin