Delinquencies Still Well Below Pre-Pandemic Levels—When Will That Change?

Black Knight Inc. has released a “first look” the latest iteration of its Mortgage Monitor Report for August 2022, which looks at delinquency and foreclosure rates across the U.S. 

According to Black Knight, the national delinquency rate fell to 2.79% in August. The delinquency rate was 2.89% in July, 2.84% in June, 2.75% in May, 2.80% in April, and 2.84% in March. This number was is also just 4 basis points higher than the record low recorded by this report set in May 2022. 

All-in-all, serious delinquencies, or loans more than 90 past due but not yet in foreclosure, pulled back slightly in August after worsening for the first time in 22 months in June to 567,000 files. After dropping steadily over recent months, cure activity also improved in August, with 62k seriously delinquent loans coming current, up from 58,000 in July. 

Breaking down the number: 

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 2.79% 

• Month-over-month change: -3.61% 
• Year-over-year change: -30.26% 

Total U.S. foreclosure pre-sale inventory rate: 0.35% 

• Month-over-month change: -0.01% 
• Year-over-year change: 29.23% 

Total U.S. foreclosure starts: 20,300 

• Month-over-month change: 14.69% 
• Year-over-year change: 185.92% 

Monthly prepayment rate (SMM): 0.67% 

• Month-over-month change: 1.51% 
• Year-over-year change: -69.48% 

Foreclosure sales as % of 90+: 0.53% 

• Month-over-month change: 1.83% 
• Year-over-year change: 173.93% 

Number of properties that are 30 or more days past due, but not in foreclosure: 1,489,000 

• Month-over-month change: -54,000 
• Year-over-year change: -633,000 

Number of properties that are 90 or more days past due, but not in foreclosure: 567,000 

• Month-over-month change: -27,000 
• Year-over-year change: -772,000 

Number of properties in foreclosure pre-sale inventory: 185,000 

• Month-over-month change: 1,000 
• Year-over-year change: 43,000 

Number of properties that are 30 or more days past due or in foreclosure: 1,674,000 

• Month-over-month change: -54,000 
• Year-over-year change: -590,000 

  

Top 5 States by Non-Current Percentage 

Mississippi: 6.28% 

Louisiana: 5.63% 

Oklahoma: 4.71% 

Alabama: 4.62% 

West Virginia: 4.43% 

  

Bottom 5 States by Non-Current Percentage 

Oregon: 1.98% 

California: 1.81% 

Colorado: 1.77% 

Idaho: 1.72% 

Washington: 1.70% 

  

Top 5 States by 90+ Days Delinquent Percentage 

Mississippi: 2.37% 

Louisiana: 2.02%  

Alaska: 1.72% 

Alabama: 1.68% 

Arkansas: 1.55% 

  

Top 5 States by 6-Month Change in Non-Current* Percentage 

Hawaii: -27.50% 

Vermont: -26.11% 

New York: -22.48% 

California: -21.75% 

Utah: -20.52% 

  

Bottom 5 States by 6-Month in Non-Current* Percentage 

Iowa: -4.32 % 

South Dakota: -6.19 % 

Illinois: -7.77 % 

Alaska: -8.34 % 

Oklahoma: -8.43 %