Mortgage delinquencies were down across the board in January, with the overall national delinquency rate falling to 3.38%, a decline of 10 basis points from December, according to black KnightMortgage performance statistics at the end of the month.
Thank you for reading this post, don't forget to subscribe!National crime declined by 15.1% in January compared to the same period last year. The number of borrowers who were 30 days late decreased by 46,000, or 4.8%, from the previous month, while serious delinquencies – which refer to delinquencies more than 90 days – improved again, during the same period. 4,000 or a decline of 0.7%.
Florida saw a massive increase in mortgage payment inventory more than 90 days late. Still dealing with the aftermath of Hurricane Ian, the state saw another 1,700 loans fall into serious delinquency.
The data was sourced from its newly expanded McDash loan-level mortgage data set which according to Black Knight “draws insight into more than 200 million active and historical loan-level mortgage records for an even more detailed and representative analysis of today’s complex market.” provides”.
The McDash data set has more than 80 contributors, and according to the firm, Black Knight’s EMBS agency securities data provides clarity into performance across an active mortgage universe of approximately 52 million loans.
The national crime rate in January is an improvement from the fourth quarter of 2022 when mortgage bankers association (MBA) saw an increase in mortgage delinquency due to the weak economy and inflation.
Delinquency rates for mortgage loans on one- to four-unit residential properties rose to a seasonally adjusted rate of 3.96% of all loans last quarter.
The latest economic data showed a strong job market, resilient consumer spending and a slowdown in deflation numbers.
Foreclosure starts rose 17% to 33,000 in January, the fourth consecutive increase. However, foreclosure starts are still 37% below pre-pandemic levels. While foreclosures were initiated on 5.6% of serious crimes last month, Black Knight noted that 48% are still down from the initiation rate seen in January 2020.
Active foreclosure listings rose 2.5% in January and now stand at 48,000, or 20% year over year. A total of 7,000 foreclosures were completed nationally in January, up 15.2% from the previous month, but down nearly 50% from early 2020 levels.
As purchase and refinance loans continue to face interest rate constraints, the monthly prepayment rate fell 19.5% month over month to another record low in January, dating back at least to 2000 when Black Knight used the metric. started reporting.
