Borrowers continue to be resilient as mortgage delinquencies recede 

Key Takeaways:

– National delinquency rate decreased to 3.34% in February
– Serious delinquencies (90+ days past due) decreased by 11,000 loans
– Early-stage delinquencies (30-60 days past due) decreased month over month and year over year
– Foreclosure starts decreased by 27.7% month over month
– Active foreclosure inventory fell to 211,000 homes
– Completed foreclosure sales decreased by 9.5% compared to January
– Prepayment activity rose by 3 basis points
– Five states with highest delinquency rates were Mississippi, Louisiana, Alabama, Arkansas and Indiana
– Five states with lowest delinquency rates were Montana, California, Idaho, Washington and Colorado

HousingWire:

Mortgage delinquencies improved again in February as prepayment activity increased moderately.

The national delinquency rate eased to 3.34% in February, down from 3.38% in January, according to an Intercontinental Exchange (ICE) mortgage performance report released Thursday. February’s rate was also 11 basis points lower than it was a year ago. 

In February, serious delinquencies (loans 90 or more days past due) were down month over month, with 11,000 fewer loans in that category and a total of 459,000 loans affected. On a yearly basis, the rate of serious delinquencies was 18% below the February 2023 rate of 562,000 loans.

Meanwhile, early-stage delinquencies (30 to 60 days past due) decreased month over month and year over year. In February, roughly 1.782 million loans were at least 30 days overdue. 

On the other hand, foreclosure starts marked a 27.7% month-over-month decrease to 25,000, the second lowest rate in the past year. Meanwhile, the active foreclosure inventory fell to 211,000 homes, shedding 7,000 units since January. Likewise, the 6,000 completed foreclosure sales last month were down 9.5% compared to January.

Prepayment activity rose 3 basis points in February to a level not seen since October 2023. A brief dip in mortgage rates spurred an uptick in purchase and refinance demand.

The five states with the highest delinquency rates were Mississippi, Louisiana, Alabama, Arkansas and Indiana. At the other end of the spectrum, Montana, California, Idaho, Washington and Colorado were the states with the lowest delinquency rates. 

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Property Chomp’s Take:

Hey there! Let’s talk about mortgage delinquencies and how they improved in February. According to the latest data from the Intercontinental Exchange (ICE), the national delinquency rate dropped to 3.34% last month, down from 3.38% in January. This is definitely good news for homeowners and the housing market as a whole.

In February, serious delinquencies (loans 90 or more days past due) also saw a decrease both month over month and year over year. There were 11,000 fewer loans in this category, totaling 459,000 affected loans. And compared to February 2023, the rate of serious delinquencies was 18% lower.

Early-stage delinquencies (30 to 60 days past due) also went down in February, with approximately 1.782 million loans falling into this category. On the foreclosure front, there was a 27.7% decrease in foreclosure starts, with only 25,000 new starts reported. The active foreclosure inventory also dropped to 211,000 homes, a decrease of 7,000 units from January.

One interesting trend to note is the increase in prepayment activity, which rose to a level not seen since October 2023. This was likely due to a brief dip in mortgage rates, sparking more interest in both purchase and refinance transactions.

When looking at delinquency rates by state, Mississippi, Louisiana, Alabama, Arkansas, and Indiana had the highest rates, while Montana, California, Idaho, Washington, and Colorado had the lowest rates.

Overall, it’s encouraging to see improvements in mortgage delinquencies and foreclosure rates, as it indicates a healthier housing market. Let’s hope this positive trend continues in the coming months!