Mortgage delinquencies on rise for first time in six months

Mortgage delinquencies saw a slight increase in the second quarter after declining for five consecutive quarters, according to a report released today by the Office of the Comptroller of the Currency, prompting analysts to suggest the soft job market was leading more people to fall behind on their mortgages, the Wall Street Journal reported.

About 12 percent of the nation’s borrowers missed at least one mortgage payment or were in foreclosure during the second quarter, a small jump from 11.4 percent in the first quarter.

“It’s something to not be overly worried about, but it’s something to clearly watch to see where this is going,” said Joseph Evers, the OCC’s deputy comptroller for large bank supervision.

Loans backed by federal agencies such as the Federal Housing Administration saw the biggest jump in delinquencies, the Journal said. Almost 9.3 percent of federal loans were more than 60 days in default or in foreclosure or bankruptcy at the end of June, up from 8.9 percent at the end of March but down from 9.5 percent one year earlier.

Meanwhile, as The Real Deal reported earlier today, fixed-rate mortgage rates this week are at an all-time record low of 4.01 percent, according to a statement released by Freddie Mac today. The 15-year rate also averaged an all-time record low at 3.28 percent for the week.
[WSJ]