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Delinquency Rate Experiences Largest Year-Over-Year Decline in Four Years

delinquent-noticeDespite seeing a slight month-over-month increase, the national delinquency rate on residential single-family homes experienced its largest decline in nearly four years, according to Black Knight Financial Services' "First Look" at Mortgage Data for August 2015 released Friday.

The delinquency rate, which includes residential homes that are 30 days or more overdue on mortgage payments but not in foreclosure, tumbled by 18 percent year-over-year in August down to 4.83 percent, the largest over-the-year decline since May 2011, according to Black Knight. This occurred despite a 2.5 percent uptick over-the-month in the delinquency rate for August 2015.

That 4.83 percent of properties in delinquency calculates to about 2.45 million mortgages nationwide, and the over-the-year decline represents about 548,000 properties. Non-current inventory, which includes all properties with loans 30 days or more overdue or in foreclosure, was down by 766,000 year-over-year in August, down to 3.14 million properties. All 50 states saw improvements in their non-current inventory over the previous six months, led by Florida with 18 percent. Wyoming, which already had one of the nation's lowest non-current inventory rate, saw a 0.7 percent improvement, according to Black Knight.

9-24 BK Graph

The number of residential mortgage loans in some state of foreclosure as of the end of August 2015 (696,000) was the lowest total since November 2007, according to Black Knight. This represented about 1.37 percent of the residential mortgage market, a decline of nearly 24 percent from August 2014.

Foreclosure starts rose by 7 percent over-the-month in August up to 80,500, driven by an increase in repeat foreclosures (borrowers who were in active foreclosure, then shifted back to either current or delinquent status, then returned to being in active foreclosure).

Click here to see the complete First Look report for August 2015. The month-end mortgage statistics presented (as of August 31, 2015) are derived from Black Knight's loan-level database representing approximately two-thirds of the nationwide mortgage market.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
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