National Delinquency Rate Drops 15%

Great news for those tracking the national delinquency rate: the rate dropped 15% (or 53 basis points) by the end of March 2023; falling below the 3% mark for the first time on record ending the month at 2.92%. 

This news comes from Black Knight’s First Look at delinquency data covering March 2023 and the strong numbers posted are a good sign as we move into the prime summer homebuying season. 

Typically, delinquency rates always fall in March as borrowers use newfound money from federal tax returns to catch up on bills. 

Factoring in March's decline, the total number of past-due mortgages (including active foreclosures) has fallen to its lowest level in nearly 23 years, dating all the way back to April 2000. In addition, the number of serious delinquencies, or those 90 days past due, showed serious improvement by falling 51,000 throughout all 50 states. 

By the numbers: 

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 2.92% 

Month-over-month change: -15.23% 

Year-over-year change: -13.23% 

  

Total U.S. foreclosure pre-sale inventory rate: 0.46% 

Month-over-month change: -0.21% 

Year-over-year change: 13.24% 

  

Total U.S. foreclosure starts: 32,000 

Month-over-month change: 9.03% 

Year-over-year change: -5.69% 

  

Monthly prepayment rate (SMM): 0.50% 

Month-over-month change: 44.42% 

Year-over-year change: -61.41% 

  

Foreclosure sales: 7,500 

Month-over-month change: 4.59% 

Year-over-year change: 24.64% 

  

Number of properties that are 30 or more days past due, but not in foreclosure: 1,539,000 

Month-over-month change: -272,000 

Year-over-year change: -209,000 

  

Number of properties that are 90 or more days past due, but not in foreclosure: 511,000 

Month-over-month change: -51,000 

Year-over-year change: -331,000 

  

Number of properties in foreclosure pre-sale inventory: 240,000 

Month-over-month change: 0 

Year-over-year change: 31,000 

  

Number of properties that are 30 or more days past due or in foreclosure: 1,779,000 

Month-over-month change: -272,000 

Year-over-year change: -178,000 

  

Top 5 states by non-current percentage 

Mississippi: 7.05 % 

Louisiana: 6.61 % 

Alabama: 5.13 % 

West Virginia: 4.55 % 

Pennsylvania: 4.53 % 

  

Bottom 5 states by non-current percentage 

California: b2.03 % 

Montana: 1.95 % 

Idaho: 1.86 % 

Washington: 1.83 % 

Colorado: 1.80%  

Top 5 states by 90+ days delinquent percentage 

Mississippi: 2.36 % 

Louisiana: 1.98 % 

Alabama: 1.62 % 

Arkansas: 1.43 % 

Georgia: 1.30 % 

  

Top 5 states by 12-month change in non-current percentage 

Alaska: -28.18 % 

Vermont: -24.48 % 

Connecticut: -21.67 % 

New Jersey: -18.90 % 

New York: -18.77 % 

  

Bottom 5 states by 12-month change in non-current percentage 

Idaho: -0.60 % 

South Dakota: -0.93 % 

Florida: -4.01 % 

Michigan: -4.66 % 

Utah:-5.17 %