Black Knight: Prepayments Surge on Lower Interest Rates; Seasonal Delinquency Rate Improvement Remains Muted

MBA NewsLink Staff

April 23, 2019

Black Knight, Jacksonville, Fla., said mortgage prepayment activity increased by 28% month-over-month in March, the largest single-month increase since 2016, in response to declining interest rates and the start of the spring home buying season.

The company's First Look Mortgage Monitor also reported the national delinquency rate fell by 5.3% for the month, the smallest improvement for any March in six years in what is typically the strongest-performing month of the year.

The month's 39,700 foreclosure starts marked the lowest single-month volume in more than 18 years, while reduced outflow held active foreclosure inventory steady at 264,000. Outstanding 90-day delinquencies have now fallen below 500,000 for the first time in more than 12 years.

Other report data:

--Total U.S. loan delinquency rate (30 or more days past due, but not in foreclosure): 3.65 percent in March, down by 5.3 percent from February and down by nearly 2 percent from a year ago.

--Total U.S. foreclosure pre-sale inventory rate: 0.51 percent, down by 0.16 percent from February and down by nearly 19 percent from a year ago.

--Total U.S. foreclosure starts: 39,700, down by 1.49 percent from February and down by nearly 24 percent from a year ago.

--Monthly prepayment rate: 0.84 percent, up by 28 percent from February but down by 4.2 percent from a year ago.

--Properties 30 or more days past due but not in foreclosure: 1.903 million, down by 98,000 from February and down by 9,000 from a year ago.

--Properties 90 or more days past due but not in foreclosure: 493,000, down by 8,000 from February and down by 139,000 from a year ago.

--Properties in foreclosure pre-sale inventory: 264,000, unchanged from February and down by 57,000 from a year ago.

--Properties 30 or more days past due or in foreclosure: 2.168 million, down by 97,000 from February and down by 64,000 from a year ago.

--States with highest percent of non-current loans: Mississippi, Louisiana, Alabama, West Virginia, Arkansas

--States with lowest percent of non-current loans: Colorado, Oregon, Washington, Idaho, California.

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