Foreclosure starts increased last month, moving off their 10-year low, according to data released by Black Knight Financial Services.
Black Knight reported in its May "First Look" mortgage performance release Wednesday that foreclosure starts totaled 62,100 — 5.8% higher than a month earlier. Still, this figure remained 19.8% below where it was a year ago.
Similarly, the total loan delinquency rate rose month-over-month 0.36% to 4.25% and the number of properties 30 or more days past due but not in foreclosure increased by 7,000 to just over 2.1 million. Still, these figures were lower by 13.47% and 325,000 properties, respectively, from last year.
Black Knight also found that the monthly prepayment rate, an indicator of refinance activity, rose by 3.31% to 1.3%. The rate remained 2.4% below where it was last year though, suggesting that refinance activity is not beating last year's levels despite a drop in interest rates.
The total foreclosure presale inventory rate dropped by 3.55% to 1.13%. A year ago, this rate was 28.8% higher. The number of properties in presale inventory in May was 574,000, which is 21,000 lower than last month and 229,000 lower than a year ago.
