Mortgage Delinquency Rates Decline for Third Consecutive Month to New All-Time Record Low

According to Black Knight, an information provider for the mortgage and home equity lending and servicing industry, the national mortgage delinquency rate dropped to an all-time low of 2.75% in May, continuing two consecutive months of declines which started in March. The mortgage delinquency rate is now 42% below year-ago levels.

A total of 1.46 million properties were in early-stage delinquencies, defined as borrowers who missed a single mortgage payment, which is a slight increase of 0.2% from April due to typical seasonal patterns. It’s more than a 71% drop from the same period in 2021. Some 595,000 properties were considered seriously delinquent, in which loan payments are more than 90 days past due, but not in foreclosure. That metric dropped 7% in May from the previous month. However, the number of properties in serious delinquency were 45% above pre-pandemic levels.

Mississippi had the highest rate of serious delinquency of 2.35% in May. Louisiana followed at 2.12% and Alabama was third at 1.67%.