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Black Knight Financial Services’ monthly mortgage report shows that only 1% of all loans are in active foreclosure. By that metric, the housing market is healthier than it has been at any point since the financial crisis began.
Foreclosures in September
According to data in Black Knight’s “First Look” at September’s mortgage data, the 1% active foreclosure rate of all mortgages in the U.S. represents a nine-year low, sitting 3.38% lower than the previous month and 31.23% lower than September of last year.
The report also showed there were only 61,700 foreclosure starts in the month of September. That marks a 10.32% decrease from August and a 22.78% decrease from September 2015.
Loan Delinquency
The total loan delinquency rate, made up of loans not yet in foreclosure but 30 or more days past due, was 4.27% of all loans. September’s rate represents a small increase of 0.74% over last month, but a substantial decrease (12.24%) from 2015. The data shows 2,165,000 properties that are 30 or more days overdue, but not in foreclosure, a 14,000 home jump over August, but still 292,000 less than last September. The report notes that September’s slight increase in delinquencies is mild by historical standards.
A Geographic Look at Foreclosures
The total of 2,674,000 combined properties that are either in foreclosure or are 30 or more days past due is down 4,000 from August and 520,000 from September 2015.
Broken down by state, the top five states by non-current (behind schedule) percentage are:
1. Mississippi at 11.16%
2. Louisiana at 10.32%
3. New Jersey at 8.13%
4. Alabama at 7.85%
5. West Virginia at 7.72%
The bottom five states by non-current percentage:
1. North Dakota at 2.23%
2. Colorado at 2.44%
3. Minnesota at 2.75%
4. Montana at 2.88%
5. South Dakota at 2.95%
In another interesting note, according to the report, September saw the third highest prepayment rate seen in three years.
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