Home / Daily Dose / Why Did Mortgage Delinquencies Rise?
Print This Post Print This Post

Why Did Mortgage Delinquencies Rise?

foreclosuresJune signals the end of the first half of the year. It is also a time when the market observes a spike in delinquencies. This year was no different, according to Black Knight's First Look report.

The report indicated that seasonal typical rises in mortgage delinquencies, combined with June 2019 ending on a Sunday, pushed the national delinquency rate up nearly 11% from May 2019’s all-time low. June also saw prepayment activity dipping for the first time in five months. In fact, prepayments fell 7.5% month-over-month during this period.

Year-over-year, however, mortgage delinquencies continued their downward decline. The report revealed that serious delinquencies or loans that are 90 or more days past due, but not yet in active foreclosure fell to their lowest level in 12 years. The total delinquency rate for loans that are 30 days past due but not in active foreclosure fell 20% year-over-year.

The overall non-current inventory saw a spike in June compared with May 2019, as did the total foreclosure starts which rose 2.82%. Though foreclosure starts and the number of loans in active foreclosure rose modestly in June, they were down year-over-year.

The number of properties that were 30 or more days past due but not in active foreclosure also rose in June and saw an annual spike as well. The report indicated that such properties rose month-over-month to 1.95 million from 1.9 million in May. June 2019 saw a spike of 25,000 such properties compared to the same period last year.

Mississippi led the states that had the maximum non-current mortgages. Around 10.7% of the state's properties were non-current in June recording an 11.03% year-over-year change. At around 8% of its total properties in the non-current zone, Louisiana was second on this list. Alabama (7.1%), West Virginia (6.8%), and Arkansas (6.2%) rounded off this list.

Colorado saw the least number of non-current mortgages in June, the report indicated. Around 1.9% of the state's housing was non-current. Oregon (2.09%), Washington (2.1%), Idaho (2.2%) and California (2.2) rounded off the bottom five states by non-current percentage.

About Author: Radhika Ojha

Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas.
x

Check Also

Federal Reserve Holds Rates Steady Moving Into the New Year

The Federal Reserve’s Federal Open Market Committee again chose that no action is better than changing rates as the economy begins to stabilize.