Mortgage Delinquencies Jump by Almost 10% in June

Lender Processing Services (LPS) recently released its Mortgage Monitor Report, which showed that early mortgage delinquencies rose by 9.9% during the month of June. The national mortgage delinquency rate went from 6.08% in May to 6.68% in June. However, it is lower than it was in the beginning of the year, when it was 6.9%, and 12 months prior at 6.5%.

Herb Blecher, LPS’ applied analytics senior vice president, attributed the spike to a “documented seasonal phenomenon,” stating that, over the last 18 years, these changes in the delinquency rate happened all but four times. He also noticed that delinquencies with adjustable-rate mortgages increased at a much lower rate than those of fixed-rate mortgages, at 18% and 19%, respectively.

The increase in June was felt throughout all 50 states. According to the LPS report, Colorado was impacted the greatest with a 31.7% surge of delinquencies after 30-plus days, followed by Utah with 29.6%. Here in New York State, delinquencies were up by 21.5%.

The survey was based on 700,000 newly delinquent loans during the month of June.

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