Foreclosure rates hit 12-year low, but impact of wildfires not yet felt
The 30-day delinquency rate dropped to a low not seen in over a decade in July, but foreclosure starts also increased to a three-month high.
The delinquency rate for mortgages 30-days past due, but not in foreclosure, was 3.61% in July, the lowest level since March 2006, according to Black Knight. The July delinquency rate is also down 7% from the same period last year, and represents a 3% drop month-over-month.
It's only the second time in the past three years that foreclosure starts have increased. Foreclosure starts rose 11% month-to-month in July after falling to a 17-year low of 48,300 in June. However, foreclosure starts are still 9% lower year-over-year.
The number of properties in foreclosure presale inventory plummeted by 105,000 from the previous year, but rose by 2,000 properties from June to July.
July's increase in foreclosure starts and decline in delinquency rate contrast a drop in foreclosure starts and an increase in delinquencies the previous month.
Higher mortgage rates lowered the monthly prepayment rate to 0.9%, representing an 11% decline year-over-year and a 5% drop month-over-month.
The noncurrent population, referring to loans 30 or more days past due or in active foreclosure, fell to a more than 12-year low as better delinquency rates offset slight growth in foreclosures.
Mississippi and Louisiana led states with the highest share of noncurrent loans, at 9.61% and 7.78%, respectively. In contrast, Colorado, with 1.91%, and Oregon, with 2.13%, had the lowest shares.