A recent report from Black Knight Financial Services released on Thursday looked at month-end mortgage performance statistics for January 2017. The report found that delinquencies improved by 3.9 percent compared to December and was down 17 percent from January 2016.
In addition, prepayment speeds decreased by 30 percent in January to the lowest numbers since February 2016.
However, foreclosure starts spiked by nearly 18 percent, bringing the nation’s foreclosure starts to 70,400, which hasn’t reached this level since March 2016. The last two months have seen a significant increase in foreclosures. “The foreclosure rate for 2016 had the largest improvement of any year since 2000,” as stated in Black Knight Financial Services’ December 2016 month-end mortgage performance report.
The national foreclosure pre-sale inventory rate continued to improve, decreasing in January to 0.94 percent, which is close to a 28 percent year-over-year decline.
The states with the highest level of delinquencies were Mississippi, Louisiana, West Virginia, Alabama, and New Jersey. Mississippi was at the top of the list with a non-current percentage of 11.36, while New Jersey came in fifth at 7.79 percent.
Nearly 2.6 million borrowers are behind on their mortgages payments, which is the lowest number since August 2006.