In August the nation’s mortgage loan delinquency rate increased nearly 5% over the previous month to its highest level since February, according to Black Knight Financial Services.
Inventory rose by 146,000 from July. The August “First Look” report finds, however, that most of these new delinquencies are in their early stage. The mortgage loan delinquency rate, which includes loans 30 or more days past due but not in foreclosure, increased month-over-month to 5.9%, but still remains at 4.8% lower compared to a year earlier.
The number of properties that were 30 or more days past due but not in foreclosure in August surpassed 2.9 million. Another 1.14 million were seriously delinquent, or 90 or more days past due, but not in foreclosure. In total, more than 3.9 million properties were 30 or more days past due or in foreclosure.
For the first time in five months foreclosure starts fell 10% from July and 24% compared to August 2013. The inventory of loans in foreclosure was at 913,000, the lowest level since March 2008. And the average loan in foreclosure has now been past due for 1,010 days, Black Knight said.
At 1.8%, the presale foreclosure inventory rate also continued to shrink dropping 2.8% month-over-month and nearly 32.4% year-over-year.
The states with the highest foreclosure rate in August were Mississippi at 14.68%, New Jersey 12.59%, Louisiana 11.37%, New York 11.1% and Florida 10.98%.
The report found that after five straight months of increases, the monthly prepayment rate, which historically has been a good indicator of refinance activity, dropped more than 8% in August, reflecting recent market changes.