From Black Knight: Black Knight’s First Look at August 2016 Mortgage Data: Prepayments Skyrocket, Fueled by Post-‘Brexit’ Activity, Hit Highest Single-Month Rate in Over Three Years

• 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
Delinquent 4.24% 4.51% 4.87% 5.93%
In Foreclosure 1.04% 1.09% 1.48% 1.92%
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
Total Properties 2,678,000 2,836,000 3,161,000 3,955,000