Black Knight Mortgage Monitor for February

by Calculated Danger on 4/05/2021 12:21:00 PM Black Knight launched their Mortgage Monitor report for February in the present day. In response to Black Knight, 6.00% of mortgages have been delinquent in February, up from 5.85% of mortgages in January, and up from 3.28% in February 2020. Black Knight additionally reported that 0.32% of mortgages


by Calculated Danger on 4/05/2021 12:21:00 PM

Black Knight launched their Mortgage Monitor report for February in the present day. In response to Black Knight, 6.00% of mortgages have been delinquent in February, up from 5.85% of mortgages in January, and up from 3.28% in February 2020. Black Knight additionally reported that 0.32% of mortgages have been within the foreclosures course of, down from 0.45% a 12 months in the past.

This provides a complete of 6.32% delinquent or in foreclosures.

Press Launch: White-Scorching Housing Market and Rising Charges Push Affordability Again to 5-12 months Common; Low New Itemizing Volumes Additional Constraining Stock

At the moment, the Information & Analytics division of Black Knight, Inc. launched its newest Mortgage Monitor Report, primarily based upon the corporate’s industry-leading mortgage, actual property and public information datasets. This month, with the U.S. housing market remaining extraordinarily sizzling by any historic measure, the report seems to be at residence value appreciation over the previous 12 months and the way that’s impacted affordability. In response to Black Knight Information & Analytics President Ben Graboske, extremely low ranges of for-sale stock, coupled with nonetheless traditionally low rates of interest, proceed to place upward strain on residence costs and tighten affordability.

Our repeat sales-based Black Knight Residence Worth Index exhibits February’s annual value appreciation at 11.6%, the quickest progress fee in additional than 15 years,” stated Graboske. “Likewise, the each day residence gross sales information tracked by our Collateral Analytics group discovered a virtually 16% year-over-year improve within the median gross sales value in February. A number of years of constrained housing stock and traditionally low rates of interest have helped gas this fireplace to the purpose the place almost 75% of the 100 largest U.S. markets have seen annual residence value progress of 10% or larger. What’s extra, Collateral Analytics’ Market Circumstances Report exhibits the housing markets in 75% of ZIP codes rated both ‘Robust’ or ‘Scorching’ primarily based on underlying market metrics. Solely 7% are characterised as ‘Regular.’

“After all, upward strain on residence costs has additionally served to tighten affordability, and with charges on the rise, affordability considerations are coming into sharper aid. It now takes 20% of the median earnings to make the month-to-month cost on the acquisition of an average-priced residence, again as much as the five-year common after a number of years of low rates of interest mitigating the impression of rising costs on affordability. Housing is now the least reasonably priced it’s been – factoring in rates of interest, residence costs and earnings – since mid-2019. Any hopes of 2021 bringing an inflow of houses to the market and lessening strain on costs seem like dashed for now, as new for-sale listings have been down 16% and 21% year-over-year in January and February, respectively. Slightly than an inflow of houses in the marketplace, we’re now 125,000 fewer new listings within the gap in comparison with the primary two months of 2020 and trending within the fallacious course. With larger rates of interest and a seamless scarcity of stock, will probably be vital to maintain a cautious eye on each residence costs and affordability metrics within the coming months.”
emphasis added


Click on on graph for bigger picture.

Here’s a graph from the Mortgage Monitor that exhibits Energetic Stock and New Listings.

From Black Knight:

• Coming into 2021, the variety of houses listed on the market was down 32% year-over-year and had fallen to
its lowest stage on report, in accordance with Black Knight’s Collateral Analytics division

• The hopes that early 2021 would carry much-needed influx of stock to a market starved for
provide have been dashed up to now, with new itemizing volumes coming in effectively beneath pre-pandemic ranges

• In truth, the variety of houses listed on the market in January was down 16% from the 12 months prior, whereas new
listings in February have been down 21%

• Slightly than an inflow, we now have 125K fewer listings than over the primary two months of 2020 and are
trending within the fallacious course with stock down 40% year-over-year

BKFSAnd on delinquencies from Black Knight:

• After eight consecutive months of enchancment, the nationwide mortgage delinquency fee rose in
February from 5.85% to six.0%

• Delinquency fee will increase have been seen broadly throughout portfolios, geographies and asset lessons

• Regardless of the rise, 30-day delinquencies stay 19% beneath pre-pandemic ranges, whereas there are nonetheless 5X
(+1.7M) as many 90-day delinquencies as there have been in February 2020

There’s far more within the mortgage monitor.



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