The national mortgage delinquency rate fell to 2.80% in April, down four basis points from March to hit a new record low for the second consecutive month, according to Black Knight’s “first look” statistics for the month.
Overall delinquencies are down nearly 40% from last year, the data showed, while the number of borrowers who are a single payment past due increased 7.9% month-over-month, following “typical seasonal patterns.” The past-due uptick was offset by “strong improvement” among borrowers who are three or more payments past due—those volumes fell by 8% month-over-month, the data showed.
Though such serious delinquencies have fallen between 6%-12% in each of the past 14 months, volumes remain more than 55% above pre-pandemic levels, Black Knight said.
Despite still-elevated serious delinquency levels, foreclosure starts dropped nearly 12% from March and are holding well below pre-pandemic levels – though active foreclosures edged slightly higher, the numbers showed. Prepayment activity fell by 19.1% from March and 61.8% from a year ago.
The month-end mortgage performance statistics in first look data are derived from Black Knight’s loan-level database representing the majority of the national mortgage market.