A new report from Black Knight, which monitors the mortgage industry, shows mortgage prepayments are at their lowest point since 2000. The rate is down more than 10 percent from December 2018 and down more than 25 percent from January 2018.
It’s primarily driven by a reduction in home sales, according to a HousingWire article. Black Knight explained that housing turnover typically bottoms out in January and February and that prepayments could pick up again if mortgage rates remain low through the early spring home buying season. The article added that with January results dropping even year over year, lenders might need to brace for a slower home buying season this year, especially if interest rates once again begin to rise.
Also, foreclosure starts rose slightly month over month, about 8.4 percent, but are still down 19.4% from January 2018. The number of loans in active foreclosure continued to decrease, falling by 6,000 properties from December to January, and by 72,000 properties from January 2018 to January 2019.