Mortgage Delinquencies Rose For First Time In 9 Months

 

 

Mortgage Delinquencies Rose For First Time In 9 Months

 

Mortgage delinquencies rose for the first time in 9 months. Here’s what that means for the housing market. More homeowners are late on their mortgage payments. Indeed, in February, the national delinquency rate rose for the first time in 9 months, largely driven by a 97,000 rise in early-stage delinquencies But even though the total number of past-due loans rose 1.8% in February 2022 from a month earlier, it’s essential to note that the delinquency rate remains near pre-pandemic levels This is largely due to borrowers leaving forbearance plans and returning to making payments. If a payment is missed for 3 straight months or longer, one can expect a good number of these properties to show up as for-sale inventory. Foreclosures can potentially cool down a hot market. This can give home buyers more options, though foreclosures can also indicate that the local economy is struggling.