Black Knights Financial Services Inc. (BKFS) released a report on April 21, 2017, showing that mortgage delinquencies have reached its lowest since March 2006. The drop dipped 14.08 percent on a month-over-month statistics, while the year-over-year measurements showed an 11.40 percent decline.
These statisticswas yielded from the company’s national mortgage market database.
The U.S. Loan Delinquency Rate, defined as the loans 30 or more days past due, but not in foreclosure, was 3.62 percent which is also at it’s all time low. Also on a decline to is the Total Non-current Inventory. Now at below 2.3 million, it’s the lowest it’s been in 11 years. The Total Non-current Inventory is all loans 30 or more days past due and is in active foreclosure.
Prepayments speeds increase to 20 percent in the month of March compared to the previous month. This is possible a result of the falling mortgage rates in the market today. When rates are low, borrowers usually refinance their home loans to pay it off earlier. This causes prepayments speed to speed up.
Even with this current rise in prepayment speed, it still is 26 percent lower compared to the previous year’s level.
Americans Learn Housing Crisis Lesson
TransUnion has forecasted this trend in their report. It has seen a steady downward stream of the housing delinquencies for the consecutive 23 quarters of the last 26 quarters. Further, the mortgage market has improved drastically according to this international credit bureau.
The mortgage industry represents around 60% of the whole US lending market. After the last subprime bubble bursted, homeowners may have learned a hard and valuable lesson. While the economy is well under its way to recovery, consumers have become more cautious about their debts. Today, more Americans take their financial situations more seriously, trying to repay debts and keeping it current.
This statistical data was reported by the Data and Analytics Division of BKFS. Black Knights Financial Services Inc. is a company providing data, services, analytics, and integrated technology solutions to the mortgage industry of the US.