Report Shows Slowing Improvements in Mortgage Delinquencies
By Devin Meenan
Mortgage rates are a predictor for homebuyer behavior—a conversation you’ve surely had with your clients before.
Data analytics firm Black Knight, recently acquired by the Intercontinental Exchange, has released a Mortgage Monitor report tracking the state of mortgage delinquencies. The main takeaway? Mortgage delinquencies are declining, as is the rate at which they’re doing so.
Details
As of August 2023, the mortgage delinquency rate in the U.S. is 3.17%, a year-over-year decline of nearly 0.8%.
Back in early 2022, delinquency rates had declined as much as 40% year-over-year.
Serious delinquencies (90-plus days late) have declined to their lowest level since 2006; they sit at 448,000 as of August 2023—20,000 less than in July and 151,000 less than the year prior.
Early-stage delinquencies (30 – 60 days late) have increased for the past three months, with 2,000-plus being added from July to August.
The number of mortgages in foreclosure has fallen to 215,000, the lowest level since March 2022, and 68,000 less than pre-pandemic.
U.S. foreclosure starts sit at 31,900 (a 21.33% increase month-over-month and 10.74% year-over-year).
U.S. foreclosure sales were 6,900 in August 2023 (up 13.25% month-over-month and 4.27% year-over-year).
The monthly prepayment rate (SMM) sits at 0.53%, a 6.32% increase month-over-month, but a 23.67% decrease year-over-year.
Statewide breakdown:
States with the highest delinquency rates:
Mississippi (7.58%)
Louisiana (7.06%)
Alabama (5.31%)
Indiana (5%)
Pennsylvania (4.89%)
States with the lowest delinquency rates:
Oregon (2.09%)
Montana (2.02%)
Washington (2.01%)
Idaho (2%)
Colorado (1.89%)
States with the highest percentage of 90-plus day delinquencies:
Mississippi (2.12%)
Louisiana (1.76%)
Alabama (1.43%)
Arkansas (1.20%)
Georgia (1.15%)
States with the greatest year-over-year change in delinquency rates:
Alaska (-27.83%)
Rhode Island (-15.57%)
North Dakota (-13.34%)
Connecticut (-11.6%)
New York (-9.34%)
States with the lowest year-over-year change in delinquency rates:
Idaho (8.19%)
Arizona (4.41%)
Louisiana (3.85%)
Delaware (3.68%)
Nevada (3.35%)
The full Mortgage Monitor report was published on October 2 here.
Devin Meenan is an assistant editor with RISMedia.
