Black Knight, Inc. reports the following “first look” at July 2022 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

–  The national delinquency rate edged up to 2.89% in July – driven by a 4% increase in early-stage delinquencies – but remains just 14 basis points higher than the record low set in May of this year

– Serious delinquencies – loans 90 or more days past due, but not yet in active foreclosure – pulled back in July after worsening for the first time in 22 months in June

–   The number of seriously delinquent loans curing to current has dropped steadily over recent months, from 104K in March to 58K in July, indicating that the easiest workouts have likely been completed

–  Foreclosure starts retreated 25% from June for a total of 17.7K starts – some 55% below pre-pandemic levels for the month of July – equating to just 3% of 90+ day past-due loans

– Though still up from record lows that came from widespread moratoriums and forbearance protections last year, the number of loans in active foreclosure declined slightly by 6K in July

–  Prepayment activity dropped by another 18% in July and is now down by 67% from the same time last year as rising rates put downward pressure on both purchase and refinance lending