• The national delinquency rate fell five basis points from April to 2.75% in May, continuing the downward trend in overall delinquencies of the prior two months and marking yet another new low
• Following typical seasonal patterns, early-stage delinquencies – borrowers who have missed a single mortgage payment – edged marginally higher (+0.2%) month over month
• While serious delinquencies saw strong improvement, falling 7% from April, the population of such loans (those 90 or more days past due but not yet in foreclosure) remains 45% above pre-pandemic levels
• Despite elevated serious delinquency levels, foreclosure starts dropped 12% from April and continue to hold well below pre-pandemic levels while active foreclosures edged slightly higher
• Prepayment activity fell by 11.1% from the prior month and is now down 59.1% year over year on sharply higher interest rates
emphasis added
According to Black Knight’s First Look report, the percent of loans delinquent decreased 1.9% in May compared to April and decreased 42% year-over-year.
Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 2.75% in May, down from 2.80% in April.
The number of delinquent properties, but not in foreclosure, is down 1,050,000 properties year-over-year, and the number of properties in the foreclosure process is up 26,000 properties year-over-year.
| Black Knight: Percent Loans Delinquent and in Foreclosure Process | ||||
|---|---|---|---|---|
| May 2022 |
Apr 2022 |
May 2021 |
May 2020 |
|
| Delinquent | 2.75% | 2.80% | 4.73% | 7.76% |
| In Foreclosure | 0.50% | 0.46% | 0.28% | 0.38% |
| Number of properties: | ||||
| Number of properties that are delinquent, but not in foreclosure: |
1,461,000 | 1,496,000 | 2,511,000 | 4,123,000 |
| Number of properties in foreclosure pre-sale inventory: |
174,000 | 173,000 | 148,000 | 200,000 |
| Total Properties | 1,635,000 | 1,669,000 | 2,659,000 | 4,323,000 |