New mortgage data shows Florida homeowners faring slightly worse than most states

by | Aug 22, 2023

  • Florida ranks 21st in the nation for delinquent mortgages and 19th for foreclosures, reflecting a moderate standing compared to other states like Mississippi, which leads in delinquencies, and New York, leading in foreclosures.
  • The national delinquency rate saw a slight increase to 3.21% in July, but serious delinquencies fell to their lowest level since before the Great Financial Crisis, indicating mixed signs of recovery.
  • Prepayment activity dropped and foreclosure starts remained below pre-pandemic levels, reflecting continued adjustments in the housing market with interest rates ending July at 6.88%.

A new national mortgage report shows Florida ranks 21st in the nation for homeowners with delinquent mortgages, with 3.29 percent of all mortgages in the state behind in payments. At the same time, the Sunshine State ranks 19th in the nation for foreclosures, with 0.51% in that process, according to recent data. The report, by Jacksonville-based Black Knight, Inc., shows the mortgage market bearing signs of both recovery and lingering challenges.

Mississippi leads the nation in delinquencies overall, with more than 7 percent of homeowners behind in payments, followed by Louisiana, Alabama, West Virginia, and Indiana. New York has the highest foreclosure rate at 1.3 percent, a lead of about half a percent over the next closest state, with Hawaii, Louisiana, Maine, and Pennsylvania completing the top five.

The national delinquency rate, which measures the percentage of loans that are late, edged up 9 basis points to 3.21% in July. However, it was down 12 basis points year over year, a basis point being one-hundredth of a percent, and remains close to March’s record low.

In other notable trends, serious delinquencies, or those 90 or more days past due, fell to 468,000, the lowest since before the Great Financial Crisis. This reflects a decrease of 26% from July 2022. The numbers for 30-day and 60-day delinquencies, or those one or two months behind, increased slightly, while 90+ days past due fell by 0.6%.

Loans in active foreclosure, or those where lenders have initiated legal proceedings, fell to 220,000, the fewest since federal foreclosure moratoria ended, and remain down 22% from February 2020, before the pandemic.

July’s 26,300 foreclosure starts were 4% below the preceding 12-month average and remain 39% below pre-pandemic levels, while foreclosure sales nationally were down 11% from June.

Prepayment activity, where homeowners pay off their mortgages ahead of schedule, fell under easing seasonal home buying pressure and rising interest rates, which ended July at 6.88%, with prepayments down 28% from July 2022.

Florida’s standing in the national mortgage market, while not the worst, reflects broader national trends that show a recovering housing market with challenges in certain states. The state’s rising housing costs complicate the picture, especially for low- and middle-income families, many of whom have been forced to move into lower-cost communities.


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