Mortgage delinquencies rise in march, first time since 2000

Mike “Mish” Shedlock's Sitka Pacific Capital Management,Llc

March is typically a very strong month performance-wise, but not this year due to Covid-19.

Blank Knight reports "March Sees First Ever Mortgage Delinquency Increase in Early Sign of COVID-19 Impact "

Key Points

In what’s typically the strongest month of the year for mortgage performance, delinquencies rose by 3.33%, the first March increase since the turn of the century, an early sign of COVID-19’s impact on the market
Both the national foreclosure and 90-day delinquency rates set new record lows in March, a lingering reminder of the strength of the mortgage market heading into the pandemic
At just 27,600 for the month, foreclosure starts also fell to their lowest level on record, as COVID-19-related moratoriums began to impact foreclosure inflows
Prepayment activity jumped by nearly 40% in March, driven by record-low 30-year mortgage rates
Note: For the purposes of this report going forward, the millions of homeowners who have since entered into forbearance will be counted as past due, but should not be reported as such to the credit bureaus by their servicers

Black Knight Mortgage Stats

Year-over-year trends on delinquencies and foreclosures has been impressive.

That will end in April or May.

Author

Mike “Mish” Shedlock's

Sitka Pacific Capital Management,Llc

Mike “Mish” Shedlock is a registered investment advisor for SitkaPacific Capital Management.

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