Mortgage delinquencies declined 7% in May compared with April, a partial recovery from the
There were 1.93 million properties where the borrower was at least 30 days late with their mortgage payment, down 145,000 from April, according to Black Knight Financial Services.
May's delinquency rate of 3.79% was down 7.13% from April and 10.78% from May 2016.
The April increase was attributed to the month ending on a Sunday and servicers not being able to process payments for a two-day period. Delinquencies typically decline the following month after such calendar-driven increases occur, Black Knight said.
There were 562,000 seriously delinquent properties (90 days or more late on the mortgage payment but not yet in foreclosure), down by 19,000 from April and 157,000 fewer than May 2016.
Foreclosure starts increased by 5.68% on a month-to-month basis, to 55,800.
The prepayment speed, which is an indicator of refinance activity, increased by 23.34% in May from April, to 1.06%, the highest level so far this year.
