First Look: Delinquencies Spike After Setting Record Low in March

Black Knight has issued their latest “first-look” at April 2023’s month-end mortgage performance statistics which overall found that the delinquency rate spiked 13% more than the record low set in the previous month. 

Early-stage delinquencies (borrowers 30 days late) bore the brunt of the rise, increasing by 200K (+25%) which matches the impact of previous similar calendar-related events. 

Serious delinquencies (90+ days past due) continued to improve nationally, with the number of such loans shrinking in 45 states (90%) plus the District of Columbia in April. 

Foreclosure starts fell 23% to 25K for the month— the lowest since September 2022—and 45% below April 2019's pre-pandemic level. Foreclosure actions were started on just about 5% of serious delinquent borrowers in April, down slightly from March and more than four percentage points below the monthly average prior to the pandemic and active inventory declined by 6,000 in the month, and is down 60,000, or 21% from March 2020 with 6,400 foreclosure sales reported in March 2023 (down 14% from the month prior). 

By the numbers: 

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.31% 

Month-over-month change: 13.32% 

Year-over-year change: 2.11% 

  

Total U.S. foreclosure pre-sale inventory rate: 0.44% 

Month-over-month change: -2.60% 

Year-over-year change: 4.90% 

  

Total U.S. foreclosure starts: 25,000 

Month-over-month change: -22.81% 

Year-over-year change: -32.16% 

  

Monthly prepayment rate (SMM): 0.44% 

Month-over-month change: -12.56% 

Year-over-year change: -58.63% 

  

Foreclosure sales: 6,400 

Month-over-month change: -13.99% 

Year-over-year change: 14.33% 

  

Number of properties that are 30 or more days past due, but not in foreclosure: 1,746,000 

Month-over-month change: 207,000 

Year-over-year change: 61,000 

  

Number of properties that are 90 or more days past due, but not in foreclosure: 502,000 

Month-over-month change: -10,000 

Year-over-year change: -251,000 

  

Number of properties in foreclosure pre-sale inventory: 234,000 

Month-over-month change: -6,000 

Year-over-year change: 14,000 

  

Number of properties that are 30 or more days past due or in foreclosure: 1,980,000 

Month-over-month change: 201,000 

Year-over-year change: 75,000 

  

Top 5 States by Non-Current Percentage: 

Mississippi: 7.61% 

Louisiana: 7.24% 

Alabama: 5.70% 

West Virginia: 5.14% 

Pennsylvania: 5.05%  

  

Bottom 5 States by Non-Current Percentage: 

Oregon: 2.22% 

Montana: 2.19% 

Idaho: 2.16% 

Washington: 2.04% 

Colorado: 2.02%  

  

Top 5 States by 90+ Days Delinquent Percentage: 

Mississippi: 2.23% 

Louisiana: 1.91% 

Alabama: 1.59% 

Arkansas: 1.39% 

Georgia: 1.28% 

  

Top 5 States by 12-Month Change in Non-Current Percentage: 

Alaska: -17.61% 

Vermont: -14.42% 

Connecticut: -10.33% 

Hawaii: -9.21% 

New York: -8.46% 

  

Bottom 5 States by 12-Month Change in Non-Current Percentage: 

Idaho: 19.05% 

South Dakota: 13.84% 

Utah: 13.52% 

Arizona: 11.47% 

Michigan: 10.01%