Prepayment Activity at Recession Lows, Total Delinquencies Down YoY

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Posted To: MND NewsWire

Mortgage prepayment activity reached a 10-year low in November. Black Knight said, in its “first look” at the months mortgage data, that the character of prepays has been changing from a good indicator of refinance activity to one driven more by home sales. With refinancing activity fading and home sales entering its usual slow season, prepays fell by 14.95 percent from the previous month and are down 33 percent compared to November 2017. The company said the last time prepays were this low was in the thick of the financial crisis. At that point interest rates were above 6 percent and purchase lending had dropped by 50 percent over a two-year period. The delinquency rate ticked up 1.79 percent during the month to 3.71 percent of all mortgages but are still 18.53 percent lower than a year earlier…(read more)

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