In yet another sign of the seemingly ever-strengthening housing market, homeowners are keeping current on their mortgage payments as mortgage delinquencies fall to a 12 month low. This is key because delinquencies can turn in to foreclosures which can disrupt the housing market with "zombie" inventories or below market-price liquidations.
According to a recently published report by Black Knight, the total US loan delinquency rate, which represents loans 30 or more days past due, but not in foreclosure, was at 3.73% in March, marking a year-over-year change of 3.09%. The delinquency rate declined 13.24% compared to February.
March data also revealed a continuous improvement in the active foreclosure inventory. The total dropped another 10,000 loans in March to its lowest level since late 2006. Additionally, Black Knight found that prepayment activity during the month rose by 22% from February’s 4-year low. The improvement came despite interest rates remaining above 4.4%.
Source: Black Knight, Inc.