Delinquencies, Foreclosures Reach New Lows: Black Knight

APR 22, 2014 5:00am ET
Partner Insights

Mortgage delinquency and foreclosure rates in March declined to levels not seen in at least six years, according to data from Black Knight Financial Services.

In March, 5.52% of loans were 30 or more days past due, a year-over-year decline of 16.3%. This was the lowest delinquency rate since October 2007, the Jacksonville, Fla., analytic firm said in a report due out Tuesday. In February, the delinquency rate was 5.97%.

Overall, 2.7 million properties were delinquent last month, which is down 538,000 from a year ago.

Meanwhile, the foreclosure inventory rate fell to 2.1%—a level not seen since October 2008—and is down 37% from a year earlier.

Furthermore, foreclosure starts hit a seven-and-a-half year low as about 88,000 borrowers began the foreclosure process in March.

The top five states with the most delinquent loans are Mississippi (13.4%), New Jersey (12.9%), Florida (12.1%), New York (11%) and Maine (10.6%). Conversely, North Dakota (2.5%), South Dakota (3.4%), Alaska (3.8%), Colorado (3.9%) and Montana (3.9%), have the least amount of non-current loans.

Prepayment rates, historically a reliable indicator of refinance activity, ticked up 21% from February to 0.80%, but this is still down nearly 60% from last year.

These monthly statistics are derived from Black Knight's loan-level database representing roughly 70% of the overall market. 

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