The mortgage delinquency rate fell to 4.24% in August – a decrease of 6.04% compared with July and a decrease of 11.41% compared with August 2015, according to Black Knight Financial Services’ “First Look” mortgage report.
It was a recovery from July’s spike.
About 2.1 million properties were delinquent (30 days or more past due and not in foreclosure) as of the end of the month – a decrease of about 135,000 compared with July and a decrease of about 262,000 compared with a year earlier.
About 669,000 properties were seriously delinquent (90 days or more past due and not in foreclosure), a decrease of about 26,000 compared with July and a decrease of about 156,000 compared with August 2015.
The total U.S. foreclosure pre-sale inventory rate was 1.04%, a decrease of 4.25% compared with July and a decrease of 29.91% compared with a year earlier.
As of the end of August, there were about 527,000 homes in the foreclosure inventory, Black Knight estimates, a decrease of about 23,000 compared with July and a decrease of about 221,000 compared with August 2015.
There were about 68,800 foreclosure starts in August, an increase of 12.23% compared with July but a decrease of 9.71% compared with August 2015.
The monthly prepayment rate was 1.67%, an increase of 8.15% compared with a month earlier and an increase of 20.26% compared with a year earlier. Fueled by post-Brexit activity, it was the highest prepayment rate in over three years, Black Knight says.
The inventory of loans in foreclosure has now declined for 19 consecutive months and in 51 of the past 52 months, Black Knight notes.