In the first quarter of 2022, Florida ranked almost exactly in the middle of the pack in three key categories of the national homeowner economy: delinquent mortgages, total non-current mortgages and foreclosure rates, according to a report by Jacksonville-based Black. Knight Data & Analytics, Inc., a mortgage and loan data broker.
Nationally, the crime rate fell in May to a low of 2.75%, while Florida remained slightly higher at 2.9%. Defaults are defined as any loan with payment arrears of 30, 60 or 90 days, but does not include foreclosure loans. Year-over-year, Florida’s non-current mortgage rate fell 43.9%, an improvement good enough to rank 6th in the nation from a year ago, when families were struggling to make ends meet during the pandemic.
Despite the negative impact of inflation on the national economy, there has not been a noticeable rise in the number of homeowners struggling to make their payments. In May, early-stage delinquencies – that is, borrowers who only missed one mortgage payment – rose only slightly (+0.2%) month-on-month. Other, but severe delinquencies (those that are 90 days or more overdue but not yet in foreclosure) saw a big improvement — down 7% from April — even though the total number of such loans is still 45% above pre-pandemic levels.
Foreclosures in Florida, at 0.4% of all loans, are in line with the national average at 0.3%.
The Black Knight report also said that despite interest rate volatility, homeowners across the country are currently sitting on a $1.2 trillion gain in “workable equity” since the start of 2022.
“This is the strongest quarterly growth on record,” said the chairman of Black Knight. Ben Grabosk. “In total, US mortgage holders have more than $11 trillion in workable equity, also a historic total.”
One of the main factors contributing to the recent spike in home prices and declining affordability is the record number of homes being put up for sale. The Black Knight report states that despite an increase of 27,500 new listings in the real estate market from March to April, “the total number of active listings remains 67% below pre-pandemic levels, with 820,000 listings from less than would be typical at this point in most home buying seasons. Data from Black Knight suggests that the number of homes coming onto the market remains well below what would be considered “normal” levels.
See the full Black Knight report here.