From Black Knight: Black Knight Financial Services’ First Look at January Mortgage Data: Impact of Rising Rates Felt as Prepayments Decline by 30 Percent in January
• Prepayment speeds (historically a good indicator of refinance activity) declined by 30 percent in January to the lowest level since February 2016
• Delinquencies improved by 3.9 percent from December and were down 17 percent from January 2016
• Foreclosure starts rose 18 percent for the month; January’s 70,400 starts were the most since March 2016
• 2.6 million borrowers are behind on mortgage payments, the lowest number since August 2006, immediately following the pre-crisis national peak in home prices
According to Black Knight’s First Look report for January, the percent of loans delinquent decreased 3.9% in January compared to December, and declined 16.6% year-over-year.
The percent of loans in the foreclosure process declined 0.5% in January and were down 27.6% over the last year.
Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 4.25% in January, down from 4.42% in December.
The percent of loans in the foreclosure process declined in January to 0.94%.
The number of delinquent properties, but not in foreclosure, is down 413,000 properties year-over-year, and the number of properties in the foreclosure process is down 178,000 properties year-over-year.
| Black Knight: Percent Loans Delinquent and in Foreclosure Process | ||||
|---|---|---|---|---|
| Jan 2017 |
Dec 2016 |
Jan 2016 |
Jan 2015 |
|
| Delinquent | 4.25% | 4.42% | 5.09% | 5.48% |
| In Foreclosure | 0.94% | 0.95% | 1.30% | 1.76% |
| Number of properties: | ||||
| Number of properties that are delinquent, but not in foreclosure: | 2,162,000 | 2,248,000 | 2,575,000 | 2,764,000 |
| Number of properties in foreclosure pre-sale inventory: | 481,000 | 483,000 | 659,000 | 885,000 |
| Total Properties | 2,643,000 | 2,731,000 | 3,234,000 | 3,649,000 |