Black Knight: Mortgage Delinquency Rate decreased in August

From Black Knight: Black Knight: Mortgage Delinquencies Near Record Low in August; Foreclosure Starts Up 15% from July, Still More Than 40% Below Pre-Pandemic Levels
• The national delinquency rate fell 3.6% in August to 2.79%, just 4 basis points above May 2022’s record low

• Improvement was broad-based, with the number of borrowers a single payment past due falling by 4% and those 90 or more days delinquent down 4.5%

• After dropping steadily over recent months, cure activity also improved in August, with 62K seriously delinquent loans curing to current status, up from 58K in July

• The month’s 20.3K foreclosure starts represent a 15% jump in activity from July, but remain 44% below August 2019 levels

• Likewise, starts were initiated on 3.4% of serious delinquencies; up slightly from July but still less than half the rate seen in the years leading up to the pandemic

• Prepays (SMM) edged up 1.5% for the month, due to calendar-related effects, but are still down by 69% year-over-year as rising rates continue to put downward pressure on both purchase and refinance lending
emphasis addedAccording to Black Knight’s First Look report, the percent of loans delinquent decreased 3.6% in August compared to July and decreased 30% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 2.79% in August, down from 2.89% in July.