According to Next mortgage news

The national delinquency rate fell five basis points from April to 2.75% in May, continuing the downward trend in overall delinquencies of the prior two months and marking yet another new low, according to Black Knight’s “first look” at May 2022 month-end mortgage performance. Month over month, the rate fell nearly 2% (-1.93%), and year-over-year, about 42%.

The data showed that, following typical seasonal patterns, early-stage delinquencies – borrowers who have missed a single mortgage payment – were slightly higher (+0.2%) month over month.

While serious delinquencies showed strong improvement, falling 7% from April, the overall population of these loans is still 45% above pre-pandemic levels, Black Knight found. These are the loans that are 90 or more days past due but not yet in foreclosure.

Despite elevated serious delinquency levels, foreclosure starts dropped 12% from April and continue to hold well below pre-pandemic levels while active foreclosures were slightly higher.

Prepayment activity fell by 11.1% from the prior month and is now down 59.1% year over year on higher interest rates, the data showed.