by Calculated Risk on 8/22/2019 09:30:00 AM

From Black Knight: Black Knight’s First Look: July Prepayment Activity Hits Highest Level Since 2016; Mortgage Delinquencies See Strong Recovery from June Spike

• Prepayment activity jumped 26% from June to its highest level in nearly three years and 58% above this time last year as falling interest rates continue to fuel refinance incentive

• The national delinquency rate fell by 7% in July, offsetting the bulk of June’s calendar-related spike

• At 3.46%, July 2019’s delinquency rate is the lowest of any July on record (dating back to 2000)

• Both serious delinquencies (-11,000) and active foreclosure inventory (-1,000) fell as well

• Serious delinquencies (all loans 90 or more days delinquent but not in active foreclosure) fell below 445,000 for the first time since June 2006

According to Black Knight's First Look report for July, the percent of loans delinquent decreased 7.3% in July compared to June, and decreased 4.3% year-over-year.

The percent of loans in the foreclosure process decreased 0.5% in July and were down 13.2% 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 3.46% in July, down from 3.73% in June.

The percent of loans in the foreclosure process decreased in July to 0.49% from 0.50% in June.

The number of delinquent properties, but not in foreclosure, is down 54,000 properties year-over-year, and the number of properties in the foreclosure process is down 35,000 properties year-over-year.

Note: The "spike" in delinquencies in June was due to timing and seasonal factors. No worries.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	Jul 2019	Jun 2019	Jul 2018	Jul 2017
Delinquent	3.46%	3.73%	3.61%	3.90%
In Foreclosure	0.49%	0.50%	0.57%	0.87%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	1,807,000	1,950,000	1,861,000	1,986,000
Number of properties in foreclosure pre-sale inventory:	258,000	259,000	293,000	398,000
Total Properties	2,065,000	2,209,000	2,154,000	2,384,000