Mortgage delinquency rates hit record low in March, data shows

Mortgage delinquencies hit a record low in March, the latest Black Knight data showed. (iStock)

The percentage of borrowers in some stage of delinquency from not making on-time mortgage payments decreased 15.5% in March, dropping the national delinquency rate to 2.84%, according to new data from Black Knight

Delinquencies typically do well in March, averaging a decrease of 10% over the past 20 years. But this year’s decrease shattered the previous record set in January 2020.

“Robust employment, continued student loan deferrals, strong post-forbearance performance and millions of refinances into record-low interest rates have all helped put downward pressure on delinquency rates,” Black Knight stated. “After last month’s rise in such loans, the strongest improvement was among borrowers a single payment past due, with 30-day delinquencies plunging 20% from February.”

If you are struggling to make your mortgage payments or are entering early-stage delinquency, you could consider taking out a mortgage refinance to lower your monthly payments. Visit Credible to find your personalized interest rate without affecting your credit score.

MORTGAGE RATES SURGE PAST 5% – WHAT THIS MEANS FOR HOMEBUYERS

Fewer homes going into foreclosure

Serious delinquencies, or mortgage loans that are 90 days or more past due but not in foreclosure, fell 12% in March, the strongest one-month improvement in 20 years.  

Foreclosure starts fell by 3% from February, and are still significantly below pre-pandemic levels, according to Black Knight data. That means fewer homeowners are entering into foreclosures.

The number of homes actively in foreclosure increased annually in March by about 7,000 units, marking the first annual foreclosure rate increase in nearly 10 years, according to Black Knight. But as the housing market returns to pre-pandemic norms, active foreclosure inventories are well below pre-pandemic averages. 

If you are interested in lowering your monthly mortgage payment, you could consider taking out a mortgage refinance. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best rate for you.

US HOME PRICE GROWTH HITS ANOTHER NEW HIGH IN FEBRUARY: CORELOGIC REPORT

What to do if you are struggling with mortgage payments

Homeowners who are struggling to make their mortgage payments have several options available to them. For example, homeowners can request mortgage forbearance if they have been affected by COVID-19. Their servicer will allow them to pause their payments and make up the missed ones later by either paying them back in a lump sum or even adding them on to the end of the loan.

Homeowners can also refinance their mortgage loans to reduce the interest rate and lower their monthly payments. To see if mortgage refinancing is the right option for you, you can contact Credible to speak to a home loan expert and get all of your questions answered.

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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