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Mortgage delinquencies spike

Posted by Mehran Aram on Fri, Aug 9, 2019 @ 16:08 PM

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.

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Topics: Black Knight, Mortgage rates, U.S. Housing Market, Mortgage Delinquencies