Mortgage Delinquencies Fall to a 12-Year Low
The mortgage delinquency rate dropped to its lowest level in 12 years despite foreclosure starts and active foreclosures both increasing in July, according to Black Knight.
Mortgage delinquencies fell by 3.35% in July from June, and now sit at 3.61%. The decline stemmed from those unable to pay their loans from damage inflicted by Hurricanes Harvey and Irma getting cured. The rate is down 7.5% year-over-year.
There are now 1.861 million properties delinquent on their mortgage, down nearly 64,000 from June.
Properties late by 90 days or more on their mortgage payment but not yet in foreclosure reached its lowest post-recession count of 528,000, which is down 20,000 from June.
There were 48,300 foreclosure starts in July, up 11.03% from June’s 17-year low but down 9.38% year-over-year.
For the second time in the past three years, active foreclosures had a monthly increase, rising by 0.73%. However, it remained below the 300,000 threshold, going to 293,000 properties from about 291,000 in June.
Tappable equity also had a historic month, clearing $6 trillion for the first time ever.
“There is now $636 billion more tappable equity available than at the start of 2018, and nearly three times as much compared to the bottom of the market in 2012,” Ben Graboske, executive vice president of Black Knight’s data and analytics division, said in a press release.