Delinquency rate hits record low, foreclosures keep falling

Register now

The distressed mortgage market continues to dry up, with delinquencies shriveling to a record low rate and foreclosure filings dropping annually for 10 consecutive months, according to Black Knight and Attom Data Solutions.

Mortgage delinquency rates fell to 3.47% in April, the rock-bottom rate since Black Knight started recording it in 2000. Delinquencies decreased 5.4% year-over-year and 5.1% month-over-month.

With mortgage rates remaining low and home sales on the rise, prepayments continued gushing in April, shooting up 17.7% annually and 17.5% from March. While prepayment speeds may ultimately be short-lived, they're a current concern for Ginnie Mae's MBS program.

As delinquency rates dropped, foreclosures also continued their downward climb.

A total of 55,646 filings were recorded in Attom's U.S. Foreclosure Market Report for April, down 13% annually and 5% from the month before. It's the 10th month in a row the filings fell on a yearly basis.

Additionally, foreclosure starts declined 10% from April 2018 and 5% from March, to a total of 30,524. At the state level, New York led with a 43% year-over-year decrease in foreclosure starts, followed by Nevada at 36% and Colorado at 34%. However, some states went against the national trend.

"While overall foreclosure activity is down nationwide, there are still parts of the country that we need to keep a close eye on," Todd Teta, chief product officer at Attom Data Solutions, said in a press release.

"For instance, Florida is seeing a steady annual increase in total foreclosure activity for the eighth consecutive month, which is being sustained by a constant annual double-digit increase in foreclosure starts."

Washington saw the biggest rise, increasing 38%, trailed by Florida at 34% and Oregon at 22%.

Bank-repossessed properties fell year-over-year for sixth straight month. April's 11,078 real estate owned properties represented decreases of 22% annually and 9% from March.

For reprint and licensing requests for this article, click here.
Foreclosures Mortgage defaults Distressed REO Natural disasters Black Knight Attom Data Solutions