Foreclosures and delinquencies increased across the board in June, breaking months of streak of improvement.
According to data firm Black Knight, the number of single overdue borrowers increased by 5%, but the number of severely delinquent borrowers (more than 90 days past due but not in foreclosure) The number broke a 21-month period of decline. Up 1% from May.
Mortgage delinquencies also rose 9 basis points to 2.84% last month. This number hit record lows in each of the last three months in a row.
The report shows that while there is no trend in a month, overall performance is still good, with delinquency rates down 35% from this time last year.
“We will closely monitor performance metrics in the coming months to determine if we have returned to improving trends or reached an inflection point in overall delinquency rates,” the report said.
Foreclosure starts increased 27% in June but remained 40% below pre-pandemic levels. This is a 441% year-on-year increase, up significantly from the lows caused by the pandemic.
Foreclosure started at 4%. This is the highest percentage of critical delinquencies since March 2020.
The number of borrowers in foreclosure increased by 16,000, likely as moratoriums and moratorium protections for 2020 and 2021 were lifted, hitting record lows.
Prepayments fell another 7% from May as rising interest rates continued to put pressure on purchases and refinancing loans. Interest rates cheated at his 6% last month after hitting a record-breaking low during the pandemic. Overall, prepaid activity is down 64% year-over-year.