According to Black Knight’s [1] “First Look” at February 2023 data, the national delinquency rate inched up seven basis points during the month to 3.45% but remains down 12.5% year-over-year. Prepayments, however, broke a streak of four-month lows rising 0.35%—a trend which is expected to endure as the spring homebuying season takes hold.
Delinquencies themselves rose by 36,000 units and was driven by a nearly 65,000 unit increase in loans that are a single payment behind. Sixty-day delinquencies fell by nearly 12,000 units, or 4%, and 90 day delinquencies fell by 3% of 17,000 loans.
Serious delinquency volumes, or those 90 days or more past due, improved in all but five states in February. Foreclosure starts decreased 9% during the month to 29,000 starts; this number is still 19% below pre-pandemic levels.
Active foreclosure inventory rose marginally (2,000) in the month, and is up 34,000 (+15%) from February 2022 despite remaining 15% below its pre-pandemic level. February saw 7,100 foreclosure sales (completions) nationally, up 2.5% from the January.
By the numbers:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.45%
Month-over-month change: 1.96%
Year-over-year change: -12.56%
Total U.S. foreclosure pre-sale inventory rate: 0.46%
Month-over-month change: 0.81%
Year-over-year change: 15.18%
Total U.S. foreclosure starts: 29,000
Month-over-month change: -9.35%
Year-over-year change: -4.15%
Monthly prepayment rate (SMM): 0.35%
Month-over-month change: 6.23%
Year-over-year change: -71.46%
Foreclosure sales: 7,100
Month-over-month change: 2.46%
Year-over-year change: 41.53%
Number of properties that are 30 or more days past due, but not in foreclosure: 1,811,000
Month-over-month change: 36,000
Year-over-year change: -235,000
Number of properties that are 90 or more days past due, but not in foreclosure: 562,000
Month-over-month change: -17,000
Year-over-year change: -383,000
Number of properties in foreclosure pre-sale inventory: 240,000
Month-over-month change: 2,000
Year-over-year change: 34,000
Number of properties that are 30 or more days past due or in foreclosure: 2,050,000
Month-over-month change: 38,000
Year-over-year change: -200,000
Top 5 States by Non-Current Percentage:
Mississippi: 7.94 %
Louisiana: 7.65 %
Alabama: 5.80 %
Arkansas: 5.21 %
West Virginia: 5.20 %
Bottom 5 States by Non-Current Percentage:
California: 2.32 %
Montana: 2.26 %
Idaho: 2.16 %
Colorado: 2.10 %
Washington: 2.05 %
Top 5 States by 90+ Days Delinquent Percentage:
Mississippi: 2.54 %
Louisiana: 2.22 %
Alabama: 1.75 %
Arkansas: 1.57 %
Georgia: 1.40 %
Top 5 States by 12-Month Change in Non-Current Percentage:
Alaska: -24.05 %
Vermont: -22.36 %
Connecticut: -19.93 %
New York: -19.12 %
District of Columbia: -17.34 %
Bottom 5 States by 12-Month Change in Non-Current Percentage:
South Dakota: -1.41 %
Florida: -2.58 %
Idaho: -2.59 %
Michigan: -3.60 %
Utah: -3.75 %