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.
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Foreclosures storm back to pre-pandemic levels
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.