Mortgage delinquencies increase in April;   first increase in nine months


The mortgage delinquency rate (the percentage of home loans 30 or more days past due) increased in April 0.4 percent from the month before according to the latest “First Watch Report” from Lenders Processing Services (LPS). While this is a modest increase, it temporarily reverses the trend we have seen for the past 9 months of declining mortgage delinquency rates. The mortgage delinquency rate in April, at 7.12 percent of all loans, is down 10.6 percent from a year ago however. The foreclosure rate for April was 4.14 percent, the same as the month before as well as the year before so, at least the foreclosure rate is remaining flat and not increasing.

I don’t think this minor “hiccup” is cause for alarm however and, unless we see mortgage delinquencies increase in May (particularly at a higher rate than April) I think we will continue to see the market improving even if ever so slightly.

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 7.12%
Month-over-month change in delinquency rate: 0.4%
Year-over-year change in delinquency rate: -10.6%
Total U.S. foreclosure pre-sale inventory rate: 4.14%
Month-over-month change in foreclosure pre-sale inventory rate: 0.0%
Year-over-year change in foreclosure pre-sale inventory rate: 0.0%
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,522,000
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,595,000
Number of properties in foreclosure pre-sale inventory: (B) 2,048,000
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 5,570,000
States with highest percentage of non-current* loans: FL, MS, NJ, NV, IL
States with the lowest percentage of non-current* loans: MT, AK, SD, WY, ND

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets
(2) All whole numbers are rounded to the nearest thousand

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