The latest mortgage delinquency statistics show that Hurricane Irma is continuing to disrupt local mortgage repayments this month. Both short-term delinquency rates (30 days late) and more serious delinquencies (90 days plus late) are up year on year. Although we have yet to see a foreclosure spike, it sure still looks like it is coming.
Tag: mortgage
After a rapid rise in interest rates to start 2018, we have seen them start to stabilize. Average U.S. rates for 30-year fixed rate mortgages are currently at 4.42%. At the end of last month, they were sitting at 4.44%. While it is great to see upward momentum halt for the moment, the general forecast is for a steady continued rise over the rest of the year.
The latest mortgage delinquency statistics show that Hurricane Irma is continuing to disrupt local mortgage repayments this month, but in a slightly different way than last month. Short-term delinquency rates (30 days late) are lower than what we saw last month, but more serious delinquencies are still up. Although we have yet to see a foreclosure spike, it sure looks like it is coming.
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How Underwater Are We?
Did you know that about 2/3’s of homes in the United States are mortgaged? It’s a big number. Even more surprising is that about 2.5 million homeowners in the U.S. still have negative equity. Negative equity, often referred to as being “underwater” or “upside down,” happens when borrowers owe more on their mortgages than their homes are worth.
Hurricane Irma is still disrupting local mortgage repayments. It has by no means reached a point where we should be concerned about another meltdown in our market, but the impact shouldn’t be ignored. Before the hurricane, our market was showing significant year on year downturns in mortgage delinquency rates and foreclosures. The mortgage market looked about as healthy as it could get. Thus, the real estate market looked the same.