• Monthly prepayment rate (historically a good indicator of refinance activity) increased by 32 percent month-over-month
• August’s prepayment rate of 1.67 percent is the highest Single Month Mortality (SMM) rate in over three years
• Delinquencies fully recovered from July’s spike, falling 6 percent (-135,000) from one month ago
• Inventory of loans in foreclosure has now declined for 19 consecutive months — and 51 of the past 52 months
Note: the “spike” in delinquencies in July was seasonal.
According to Black Knight’s First Look report for August, the percent of loans delinquent decreased 6.0% in August compared to July, and declined 11.4% year-over-year.
The percent of loans in the foreclosure process declined 4.3% in August and were down 29.9% over the last year.
Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 4.24% in August, down from 4.51% in July.
The percent of loans in the foreclosure process declined in August to 1.04%.
The number of delinquent properties, but not in foreclosure, is down 262,000 properties year-over-year, and the number of properties in the foreclosure process is down 221,000 properties year-over-year.
Black Knight will release the complete mortgage monitor for August on October 3rd.
|Black Knight: Percent Loans Delinquent and in Foreclosure Process|
|Number of properties:|
|Number of properties that are delinquent, but not in foreclosure:||2,151,000||2,286,000||2,413,000||2,985,000|
|Number of properties in foreclosure pre-sale inventory:||527,000||550,000||748,000||970,000|