The mortgage delinquency rate (loans 30 days or more past due but not in foreclosure) dipped to 4.42% in December – a decrease of 0.91% compared with November and a decrease of 7.49% compared with December 2015, according to Black Knight Financial Services’ First Look report.
As of the end of the month, about 2.248 million properties were delinquent – a decrease of about 15,000 compared with November and a decrease of about 160,000 compared with December 2015.
About 682,000 properties were seriously delinquent (90 days or more past due but not in foreclosure) – flat compared with the previous month but a decrease of about 126,000 year over year.
The foreclosure inventory continued to shrink, as well, falling to 0.95% of all loans – a decrease of 3.29% compared with November and a decrease of 30.53% compared with December 2015.
There were about 59,700 foreclosure starts in December – a decrease of 1.16% compared with November and a decrease of 23.56% compared with November 2015.
The national foreclosure rate decreased by more than 30% in 2016, the report shows.
This marks the most improvement Black Knight has seen in any year on record.
The inventory of loans in active foreclosure fell by more than 200,000 during the year, ending at 483,000.
Prepayment activity continued to slow in December, as borrowers and the market reckoned with higher rates last month.