The mortgage delinquency rate fell 11 basis points to 3.10% in May, the second lowest national mortgage delinquency rate ever seen.
Thank you for reading this post, don't forget to subscribe!In May, the number of borrowers behind only one payment improved by 94,000, erasing nearly half of April’s increase, according to Black Knight., (The number of defaults spiked in April because the month ended on a Sunday and payments made by borrowers in the last few days of the month could not be processed immediately.)
Meanwhile, the population of “severely delinquent homeowners” (90 or more days in arrears on their mortgages) continued to decline, declining by 18,000 in April. This results in a population that currently totals around 480,000, down by 200,000 from the same period last year.
On the foreclosure side, foreclosures increased by 2.2%, reaching 25,400 for the month. May’s foreclosure start volume is just a hair above April’s six-month low and, however, is still trading 41% below 2019 levels.
The number of loans in active foreclosure dropped by 4,000 from April and is now 41,000 (-15%) less than where we were in March 2020. Criminal action was initiated on 5.1% of serious crimes, up slightly from April, but down a full percentage point from March 2020.
The number of loans in active foreclosure improved by 4,000 and decreased 15% from March 2020, with foreclosure sales increasing 5.5% from April.
Meanwhile, prepayment activity, which has historically been largely driven by refinancing and home sales, increased again as the market reacts to volatile interest rate changes. With a one-month mortality rate of 0.54%, prepay has risen to its highest level since September last year, when rates were in the mid-to-low 6’s for most of the month.
