The U.S. mortgage delinquency rate stood at about 3.71% as of the end of November, an increase of 1.76% compared with October but down 18.53% compared with November 2017, according to Black Knight’s First Look report.
About 1.925 million homeowners were delinquent 30 days or more, an increase of about 41,000 compared with the previous month but down about 399,000 compared with a year earlier.
Of those, about 510,000 loans were seriously delinquent – or 90 days or more past due – an increase of about 11,000 compared with October but down about 156,000 compared with November 2017.
The slight increase in delinquencies was in keeping with seasonal cycles.
As of the end of the month, the total presale foreclosure inventory rate stood at about 0.52%, down 0.22% compared with the previous month and down 21.95% compared with a year earlier.
There were about 45,000 foreclosure starts in November – down 10.67% compared with October and down 5.44% compared with November 2017.
The monthly prepayment rate was 0.66%, down 14.95% compared with the previous month and down 33.00% compared with a year earlier to reach the lowest level since November 2008.
Black Knight notes that historically, prepayments were driven primarily by refinance activity but, more recently, the primary driver has become housing sales.
The last time the prepayment rate was this low – in the heat of the financial crisis – interest rates were above 6% and purchase lending had fallen by more than 50% in a 24-month span.