Mortgage rates are a predictor for homebuyer behavior—a conversation you’ve surely had with your clients before.
Data analytics firm Black Knight, recently acquired by the Intercontinental Exchange, has released a Mortgage Monitor report tracking the state of mortgage delinquencies. The main takeaway? Mortgage delinquencies are declining, as is the rate at which they’re doing so.
Details
- As of August 2023, the mortgage delinquency rate in the U.S. is 3.17%, a year-over-year decline of nearly 0.8%.
- Back in early 2022, delinquency rates had declined as much as 40% year-over-year.
- Serious delinquencies (90-plus days late) have declined to their lowest level since 2006; they sit at 448,000 as of August 2023—20,000 less than in July and 151,000 less than the year prior.
- Early-stage delinquencies (30 – 60 days late) have increased for the past three months, with 2,000-plus being added from July to August.
- The number of mortgages in foreclosure has fallen to 215,000, the lowest level since March 2022, and 68,000 less than pre-pandemic.
- U.S. foreclosure starts sit at 31,900 (a 21.33% increase month-over-month and 10.74% year-over-year).
- U.S. foreclosure sales were 6,900 in August 2023 (up 13.25% month-over-month and 4.27% year-over-year).
- The monthly prepayment rate (SMM) sits at 0.53%, a 6.32% increase month-over-month, but a 23.67% decrease year-over-year.
Statewide breakdown
States with the highest delinquency rates:
- Mississippi (7.58%)
- Louisiana (7.06%)
- Alabama (5.31%)
- Indiana (5%)
- Pennsylvania (4.89%)
States with the lowest delinquency rates:
- Oregon (2.09%)
- Montana (2.02%)
- Washington (2.01%)
- Idaho (2%)
- Colorado (1.89%)
States with the highest percentage of 90-plus day delinquencies:
- Mississippi (2.12%)
- Louisiana (1.76%)
- Alabama (1.43%)
- Arkansas (1.20%)
- Georgia (1.15%)
States with the greatest year-over-year change in delinquency rates:
- Alaska (-27.83%)
- Rhode Island (-15.57%)
- North Dakota (-13.34%)
- Connecticut (-11.6%)
- New York (-9.34%)
States with the lowest year-over-year change in delinquency rates:
- Idaho (8.19%)
- Arizona (4.41%)
- Louisiana (3.85%)
- Delaware (3.68%)
- Nevada (3.35%)
The full Mortgage Monitor report will be published on October 2 here.
Devin Meenan is an assistant editor with RISMedia.
