1.55 Million Serious Delinquencies Remain; At Current Rate of Reduction, 1 Million Still Likely As September’s Wave of Forbearance Expirations Begins
- The national delinquency rate hit its lowest level since the onset of the pandemic and is now back below its pre-Great Recession average
- Despite the improvement, there are more than 1.5 million homeowners 90 or more days past due on their mortgages but who are not in foreclosure, still nearly four times pre-pandemic levels
- Serious delinquency rates remain elevated by more than a full percentage point across all 50 states, with Hawaii and Nevada serious delinquency rates remaining elevated by 3.4 percentage points
- Though serious delinquencies remain significantly elevated, the share of mortgages in active foreclosure fell to yet another record low in June at 0.27%
- Recent pullbacks in interest rates resulted in prepayment activity edging upward for the first time in three months
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