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April 2017   Volume 43, Number 4      
 

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Mortgage Delinquencies Spike among Some Homeowners

A troublesome signal has appeared in the housing market. In the fourth quarter of 2016, Federal Housing Administration mortgage delinquencies rose to 9.02 percent from 8.3 percent in the third quarter, according to data from the Mortgage Bankers Association. The jump, which followed the lowest delinquency rate since 1997, was the result of loans made since 2014 and early-stage delinquencies that are just 30 days past due.

“We had been experiencing great credit quality for so long, and to suddenly see this quarter-over-quarter reversal was a surprise, and we’re looking closely at it,” MBA CEO David Stevens said.

Now the Trump administration will have to consider the risks of the FHA’s portfolio of loans against weakening housing affordability. Home ownership remains at a 50-year low with young, first-time homebuyers unable to afford their first homes due to high costs, tight credit and high levels of student loan debt.

Analysts say they need more data before they can determine whether the uptick is just a blip or a burgeoning trend. However, there were signs in October 2016 that FHA loans were beginning to fail at a higher rate, with foreclosure activity reaching its highest level since 2007.

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In this issue:

Top U.S. Markets for Buying and Selling Real Estate

Big Institutions Sell off Commercial Real Estate

Fed Chair Says Rising Real Estate Prices Put Small Banks at Risk

Iowa Realtor Warns Agents about Email Scam

Mortgage Delinquencies Spike among Some Homeowners

Next-Generational Homes Are the Latest Real Estate Trend

Silicon Valley Is the Top U.S. Real Estate Market

Top Three Legal Issues Facing Brokers

Trump Cut Causes FHA Applications to Decline by 3.2 Percent

Real Estate Agents: Stop Commoditizing Your Services



 


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