A new report from Black Knight, the software company for the mortgage lending and servicing and real estate industries, reported a “first look” at end-March mortgage performance statistics 2022, derived from its loan-level database that represents the majority of the national mortgage market.
According to the company, the delinquency rate The national average fell by more than half a percentage point in March, falling to 2.84% and surpassing the previous record low of 3.22 % in January of 2020.
Although March usually sees the mortgage performance strongest of any month, with delinquencies falling by more than 10% on average over the last 20 years, the reduction of 15.5% of this year was “exceptionally strong”.
The results, says black kni ght, due to strong employment, continued student loan deferrals, strong post-forbearance performance, and millions of refinances at historically low interest rates have helped push down delinquency rates.
The report indicates that the strongest improvement was observed among borrowers who have only one payment due, with delinquencies of 30 days that registered a decrease of 20% month after month.
It is also noted that although serious delinquencies (those 90 or more days past due but not in foreclosure) fell by 12 % for the strongest single-month improvement in 20 years, they remain a 30% above pre-pandemic levels.
According to Black Knight, despite the high serious delinquencies, foreclosure starts fell 3% from the prior month r and remain well below pre-pandemic levels.
Regarding the number of active foreclosures, these increased slightly in March, marking the first year-over-year increase in nearly 10 years, although inventories also remained well below pre-pandemic levels.
On the prepaid activity, Black Knight found that it bucked the recent trend of sharp interest rate increases that drove prepaid speeds down, rising 9% in March, likely driven, at least in part, by seasonal increases in rates. prepayments related to home sales.
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