Black Knight: August Foreclosure Starts at 18-Year Low

Black Knight, Jacksonville, Fla., said its First Look Mortgage Monitor for Augus found foreclosure starts hit an 18-year low, while borrowers took advantage of lower mortgage rates to increase their level of prepayments.

The report said August’s 36,200 foreclosure starts made for the lowest single-month total since December 2000. The number of loans in active foreclosure inventory also fell; at 253,000, it’s the fewest since 2005.

Black Knight said prepayment activity–typically a good indicator of refinance activity–increased by 5% from July to a three-year high. August’s prepayment rate increased by 62% from a year ago and 2.5 times the 18-year low hit in January.

“Given a 30-45 day closing window, the month’s prepayment activity reflects June/July interest rates; as rates fell further in August and September, the peak in refinance-driven prepayments is likely still to come,” the report said.

Other report data:

–Total loan delinquency rate (30 or more days past due, but not in foreclosure): 3.45%, down by 0.15% from July and down by 1.49% from a year ago.

–Total foreclosure pre-sale inventory rate: 0.48% in August, down by 2.42% from July and by 11.46% from a year ago.

–Total foreclosure starts: 36,200, down by 7.65% from July and by 23.14% from a year ago.

–Monthly pre-payment rate: 1.50%, up by 5.45% from July and by 61.77% from a year ago.

–Properties 30 or more days past due, but not in foreclosure: 1.813 million, up by 6,000 from July and by 4,000 from a year ago.

–Properties 90 or more days past due, but not in foreclosure: 444,000, unchanged from July and down by 62.000 from a year ago

–Properties in foreclosure pre-sale inventory: 253,000, down by 5,000 from July and by 28,000 from a year ago.

–Properties 30 or more days past due or in foreclosure: 2.066 million, up by 1,000 from July but down by 23,000 from a year ago.

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

States with the lowest percentage of non-current loans: Colorado, Oregon, Washington, Idaho, California.

States with the highest percentage of 90-plus days delinquent: Mississippi, Alabama, Louisiana, Arkansas, Tennessee.