Black Knight First Look: July Prepayment Activity Hits Highest Level Since 2016

Black Knight, Jacksonville, Fla., said national delinquency rates fell in July as prepayment activity jumped to its highest level in nearly three years.

The company’s First Look Mortgage Monitor said 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).

The report said both serious delinquencies (-11,000) and active foreclosure inventory (-1,000) fell as well. Serious delinquencies (loans 90 or more days delinquent but not in active foreclosure) fell below 445,000 for the first time since June 2006.

Black Knight said 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 incentives.

Other report findings:

–Total foreclosure pre-sale inventory rate: 0.49%, down by 0.49% from June and down by 13.2% from a year ago.

–Total foreclosure starts: 39,300, down by 2.24% from June and down by 18.84% from a year ago.

–Monthly prepayment rate: 1.43%, up by 25.71% from June and up by 58.4% from a year ago.

–Properties 30 or more days past due, but not in foreclosure: 1.807 million, down by 143,000 from June and down by 54,000 from a year ago.

–Properties 90 or more days past due, but not in foreclosure: 444,000, down by 11,000 from June and down by 84,000 from a year ago.

–Properties in foreclosure pre-sale inventory: 258,000, down by 1,000 from June and down by 35,000 from a year ago.

–Properties 30 or more days past due or in foreclosure: 2.065 million, down by 144,000 from June and down by 89,000 from a year ago.

–States with the highest non-current rates: Mississippi, Louisiana, Alabama, West Virginia, Arkansas.

States with the lowest non-current rates: Colorado, Oregon, Washington, Idaho, California.

States with the highest percentage of serious delinquencies: Mississippi, Alabama, Louisiana, Arkansas, West Virginia.