Foreclosures and mortgage delinquencies tick up in June

Missed payments break months-long streak of improvements

National /
Jul.July 25, 2022 08:45 AM
Foreclosures in an uptick

(Illustration by The Real Deal with Getty)

Foreclosures and delinquencies were up across the board in June, breaking months-long streaks of improvements.

The number of borrowers with a single payment past due rose 5 percent, according to data firm Black Knight, while those with serious delinquencies — 90 or more days past due but not yet in active foreclosure — broke a 21-month period of decreases, with a 1 percent uptick from May.

Mortgage delinquency also had an uptick of 9 basis points last month to reach 2.84 percent. The figure previously hit consecutive record lows in each of the prior three months.

The report specifies that while one month does not make a trend, overall performance remains strong, and delinquencies are still down 35 percent from this time last year.

“We’ll be watching performance metrics closely in the coming months to determine if we return to a trend of improvement, or if we’ve reached an inflection point in overall delinquency rates,” the report said.

Foreclosure starts were up 27 percent in June, but remained 40 percent below pre-pandemic levels. That marks a 441 percent year over year increase, a significant rise from pandemic-driven lows.

Foreclosure was started on 4 percent — the highest share of serious delinquencies since March 2020 — but still came in less than half the so-called normal rate seen in the years leading up to the pandemic.

The number of borrowers in active foreclosure rose by 16,000, likely due to the lifting of 2020 and 2021’s moratoriums and forbearance protections, which caused record lows.

Prepayments fell another 7 percent from May as rising interest rates continued to put pressure on purchase and refi lending. Last month, rates flirted with 6 percent, after reaching record-breaking lows during the pandemic. Overall, prepay activity is down 64 percent year over year.





    Related Articles

    arrow_forward_ios
    Seattle Seahawks receiver and newly-licensed realtor Tyler Lockett along with 812 245th Place Northeast in Sammamish, Washington (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Redfin)
    NFL star earns his real estate wings
    NFL star earns his real estate wings
    Toll Brothers' Douglas Yearly and property at Sparks, Nevada (Toll Brothers)
    “Honey, I bought the town:” Buyer ends up with big chunk of subdivision
    “Honey, I bought the town:” Buyer ends up with big chunk of subdivision
    75 Park Lane South (Plaza Construction)
    This year’s top-selling Hudson County homes
    This year’s top-selling Hudson County homes
    (Illustration by The Real Deal with Getty)
    Housing affordability hits 33-year low
    Housing affordability hits 33-year low
    Daniel Grollo and 106 Central Park South (Photo Illustration by Steven DIlakian for The Real Deal with Getty Images)
    Trump Parc condo tied to embattled Australian construction magnate hits market
    Trump Parc condo tied to embattled Australian construction magnate hits market
    Richard Gere and Ryan Murphy with 81 Lyndel Road (Redfin, Getty)
    Celeb buyer of Richard Gere’s Westchester estate revealed
    Celeb buyer of Richard Gere’s Westchester estate revealed
    REAL NY's Louis Adler, Compass' Eugene Litvak, and ROART's Ran Oron with the Milk Factory (REAL New York, Compass, ROART, Milk Factory)
    East Williamsburg’s resi market reaches new heights
    East Williamsburg’s resi market reaches new heights
    Homeward founder Tim Heyl (Homeward, Getty Images)
    Power buyer Homeward lays off 20% of staff
    Power buyer Homeward lays off 20% of staff
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...