Several measures of mortgage distress moved up in September including the early delinquency rate according to Black Knight Financial Services. The company's "first look" at September foreclosure data shows the rate of loans that were 30 or more days past due rose 1.7 percent compared to August. The small blip would not be significant except that it was heavily weighted toward new delinquencies.
Despite the increase in the delinquency rate to 4.87 percent, it is still 13.94 percent lower than a year earlier. Still, while the number of properties that are 90 days past due but not yet in the process of foreclosure dropped by 8,000 units compared to August the overall number of properties over 30 days past due jumped by 44,000 meaning a net increase in mortgages 30 to 90 days delinquent of 36,000 units.
At the end of the reporting period total delinquencies, not including properties actively in foreclosure, numbered 2.46 million, down 392,000 from a year earlier. Of those 817,000 were more than 90 days past due, a decline of 273,000 year over year.
Foreclosure starts increased by nearly five percent month over month but were still down 16.25 percent year-over-year. Just under 80,000 properties entered the foreclosure process during the month
The pre-foreclosure inventory - properties actively in foreclosure - declined by 11,000 month-over-month to a total of 737,000. That inventory declined by 214,000 since the previous September. The inventory represents 1.46 percent of all homes with a mortgage in the U.S.
Distressed loans, including those 30 or more days past due and in foreclosure, numbered 3.19 million in September. This was 33,000 more than in August but a net change of -606,000 since September 2014.
The states the largest percentage of non-current loans are Mississippi (12.93 percent), New Jersey (10.63 percent), and Louisiana (10.08 percent).
Foreclosure sales or completed foreclosures, measured as a percentage of loans more than 90 days past due, rose to 1.98 percent, an increase of 10.54 percent from August and 16.28 percent compared to a year earlier.
Prepayment activity - often a signal of the rate of refinancing, continued to slow. Black Knight said it was down to 1.07 percent in September, a 1.74 percent reduction from August, compared to a rate of 12.29 percent in September 2014.
Black Knight's monthly "first look" is a preview of its Mortgage Monitor. That report is scheduled for publication in early November.