ARAMCO Report - The Mother of ALL Mortgage Blogs!

Mortgage delinquencies spike

Posted by Mehran Aram on Sat, Aug 10, 2019 @ 09:08 AM

Following a record low in May, mortgage delinquencies nationwide shot up 11 percent in June to 3.73 percent. This is the biggest one-month spike in nearly 10 years. However, according to a statement from Black Knight, the abrupt increase may be a fluke related to the calendar.

“The month ended on a Sunday, which means servicing operations are closed on the last two days of the month and cannot process last-minute payments,” Black Knight said. The statement also noted that month’s ending in a Sunday have contributed to nine of the 10 largest single-month delinquency gains in the last seven years.

The June increase follows a record low the prior months when late payments fell to just 3.36 percent of all mortgaged homes. This has contributed to a historic low in foreclosures as well.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Housing Market, foreclosures, Black Knight, Mortgage rates, Mortgage Delinquencies, Late Payments