Black Knight Financial Services released its First Look report for the second quarter of June 2016, which boasted the lowest level of first-time foreclosure starts in 16 years.
Furthermore, prepayment speeds sprung to a 12-month high that mirrors an overall rise in refinance activity driven by historically low interest rates.
According to the report, total U.S. foreclosure sales are at 2.31 percent — a 13.54 percent month-over-month and a 20.65 percent year-over-year increase.
The U.S. loan delinquency rate, which includes homes that are 30 or more days past due, but not in foreclosure, experienced a 1.33 percent month-over-month increase and a 10.03 percent year-over-year decrease from June 2015.
June’s first-time foreclosure starts (those properties starting the foreclosure process for the first time) were at 69,300 — the lowest starts reported in 16 years, despite an 11.59 percent month-over-month increase from May. Starts were down 11.27 percent year-over-year.
In addition to decreased first-time foreclosure starts, the monthly prepayment rate is at 1.44 percent, a 10.30 percent month-over-month and a 3.24 percent year-over-year increase.
Every month, Black Knight Financial Services releases a “first look” for its “Mortgage Monitor” report, an in-depth report of mortgage industry performance. The “first look” is based on data from the company’s repository of loan-level residential mortgage data and performance information representing over 160 million first mortgage loan assets, as well as 20 million home equity loans/lines.