According to Black Knight’s “First Look” at February 2023 data, the national delinquency rate inched up seven basis points during the month to 3.45% but remains down 12.5% year-over-year. Prepayments, however, broke a streak of four-month lows rising 0.35%—a trend which is expected to endure as the spring homebuying season takes hold. 

Delinquencies themselves rose by 36,000 units and was driven by a nearly 65,000 unit increase in loans that are a single payment behind. Sixty-day delinquencies fell by nearly 12,000 units, or 4%, and 90 day delinquencies fell by 3% of 17,000 loans. 

Serious delinquency volumes, or those 90 days or more past due, improved in all but five states in February. Foreclosure starts decreased 9% during the month to 29,000 starts; this number is still 19% below pre-pandemic levels. 

Active foreclosure inventory rose marginally (2,000) in the month, and is up 34,000 (+15%) from February 2022 despite remaining 15% below its pre-pandemic level. February saw 7,100 foreclosure sales (completions) nationally, up 2.5% from the January.

By the numbers:

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.45% 

Month-over-month change: 1.96% 

Year-over-year change: -12.56%

Total U.S. foreclosure pre-sale inventory rate: 0.46% 

Month-over-month change: 0.81% 

Year-over-year change: 15.18% 

Total U.S. foreclosure starts: 29,000 

Month-over-month change: -9.35% 

Year-over-year change: -4.15% 

Monthly prepayment rate (SMM): 0.35% 

Month-over-month change: 6.23% 

Year-over-year change: -71.46% 

Foreclosure sales: 7,100 

Month-over-month change: 2.46% 

Year-over-year change: 41.53% 

Number of properties that are 30 or more days past due, but not in foreclosure: 1,811,000 

Month-over-month change: 36,000 

Year-over-year change: -235,000 

Number of properties that are 90 or more days past due, but not in foreclosure: 562,000 

Month-over-month change: -17,000 

Year-over-year change: -383,000 

Number of properties in foreclosure pre-sale inventory: 240,000 

Month-over-month change: 2,000 

Year-over-year change: 34,000 

Number of properties that are 30 or more days past due or in foreclosure: 2,050,000 

Month-over-month change: 38,000 

Year-over-year change: -200,000 

Top 5 States by Non-Current Percentage: 

Mississippi: 7.94 % 

Louisiana: 7.65 % 

Alabama: 5.80 % 

Arkansas: 5.21 % 

West Virginia: 5.20 % 

Bottom 5 States by Non-Current Percentage: 

California: 2.32 % 

Montana: 2.26 % 

Idaho: 2.16 % 

Colorado: 2.10 % 

Washington: 2.05 % 

Top 5 States by 90+ Days Delinquent Percentage: 

Mississippi: 2.54 % 

Louisiana: 2.22 % 

Alabama: 1.75 % 

Arkansas: 1.57 % 

Georgia: 1.40 % 

Top 5 States by 12-Month Change in Non-Current Percentage: 

Alaska: -24.05 % 

Vermont: -22.36 % 

Connecticut: -19.93 % 

New York: -19.12 % 

District of Columbia: -17.34 % 

Bottom 5 States by 12-Month Change in Non-Current Percentage: 

South Dakota: -1.41 % 

Florida: -2.58 % 

Idaho: -2.59 % 

Michigan: -3.60 % 

Utah: -3.75 %