DSNews The homepage of the servicing industry
Just one month after experiencing the largest monthly increase in six years, the nation's mortgage delinquency rate took a big tumble in December, according to Black Knight Financial Services' December 2014 First Look at Mortgage Data released today. The mortgage delinquency rate, or the percentage of mortgage loans that are 30 days or more past due but not in foreclosure, dropped down to 5.6 percent for December – a decline of 7 percent from November and nearly 13 percent from December 2013.
Foreclosure inventory continued its decline. As of the end of December, there were 820,000 residential properties in some state of foreclosure, representing a nearly 35 percent decline from December 2013. Foreclosure starts, while down nearly 15 percent year-over-year in December, experienced a 21 percent jump from November up to 89,000. The monthly pre-payment rate, which is generally a good indicator of refinance activity, skyrocketed both month-over-month and year-over-year by 25 percent and 28 percent, respectively, up to 1.57 percent, its highest level since August 2013.
In its 2015 Economic Outlook released Thursday, Fannie Mae said the predicted economic growth of 3.1 percent for the coming year will be strong enough to "drag last year's unspectacular housing activity upward." Fannie Mae credits projections for continued low gasoline prices, firming labor market conditions, rising household net worth, improving consumer and business confidence, and reduced fiscal headwinds to usher in a year of steady, if "not yet robust" economic improvement that should lead to a higher rate of household formation in 2015.
