January’s jump in foreclosure starts reversed course - and then some - in February, dropping by 15% to 79,700 for the month, its lowest level since last November, and the third lowest point in at least 7 years, according to the latest report from Black Knight Financial Services.

Overall, the report found, the nation’s inventory of loans in foreclosure continued in its trend of improvement, down 315,000 from last February, a nearly 30% year-over-year decline.

The foreclosure inventory dipped below 800,000 for the first time since December 2007.

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(Source: Black Knight)

The delinquency rate dropped again as well; at 5.36%, that's the lowest it's been since the summer of 2007.

The monthly prepayment rate (historically a good indicator of refinance activity) jumped over 31% from January, and a pretty astounding 75% from last year.

Total non-current inventory (everything 30 or more days past due or in foreclosure) is down nearly 600,000 from last February. Mississippi, Rhode Island, Louisiana, Maine and Alabama remain, in that order, the top five states ranked by serious delinquent loans (90+ days past due, but not yet in foreclosure).