Prepayments fell 16.5% in October, hitting a single-month mortality (SMM) rate of 0.48%. That’s according to Black Knight’s First Look data for October. The previous record for this metric was 0.55%. That makes October’s level the lowest recorded since at least 2000 when Black Knight began tracking the data.
The national delinquency rate rose 4.5% in October to 2.91% after a 9.4% rise in 30-day delinquencies.
Florida led the jump in new early delinquencies (+19K). The state delinquency rate rose 53 basis points to 3.42%, an initial indication of Hurricane Ian’s impact on the area.
Loans 60 days past due were up 2.9% nationally. Loans 90 or more days delinquent saw some continued improvement, down another 1.5%.
October’s 19.6K foreclosure starts represented a 7% increase that partly reversed September’s decline. They are still 55% below pre-pandemic levels.
Foreclosure starts were initiated on 4% of existing serious delinquencies in October. That’s up slightly from September but still less than half the rate seen in the years leading up to the pandemic. Active foreclosure inventory “held steady.” Volumes remained subdued in 2022. This is due to still historically low foreclosure start levels, according to Black Knight.