{"id":54168,"date":"2020-07-15T06:59:53","date_gmt":"2020-07-15T11:59:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54168"},"modified":"2020-07-15T06:59:57","modified_gmt":"2020-07-15T11:59:57","slug":"it-starts-mortgage-delinquencies-suddenly-soar-at-record-pace","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54168","title":{"rendered":"It Starts: Mortgage Delinquencies Suddenly Soar at Record Pace"},"content":{"rendered":"\n

It Starts: Mortgage Delinquencies Suddenly Soar at Record Pace<\/a><\/h3>\n\n\n\n

And this is just for April, the very beginning of the Pandemic\u2019s impact on housing.<\/strong><\/p>\n\n\n\n

OK, it\u2019s actually worse. Mortgages that are in forbearance and have not missed a payment before going into forbearance don\u2019t count as delinquent. They\u2019re reported as \u201ccurrent.\u201d And 8.2% of all mortgages in the US \u2013 or 4.1 million loans \u2013 are currently in forbearance, according to the Mortgage Bankers Association<\/a>. But if they did not miss a payment before entering forbearance, they don\u2019t count in the suddenly spiking delinquency data.<\/p>\n\n\n\n

The onslaught of delinquencies came suddenly in April, according to CoreLogic, a property data and analytics company (owner of the Case-Shiller Home Price Index), which released its monthly Loan Performance Insights<\/a> today. And it came after 27 months in a row of declining delinquency rates. These delinquency rates move in stages \u2013 and the early stages are now getting hit:<\/p>\n\n\n\n

Transition from \u201cCurrent\u201d to 30-days past due<\/strong>: In April, the share of all mortgages that were past due, but less than 30 days, soared to 3.4% of all mortgages, the highest in the data going back to 1999. This was up from 0.7% in April last year. During the Housing Bust, this rate peaked in November 2008 at 2% (chart via CoreLogic<\/a>):<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

From 30 to 59 days past due:<\/strong> The rate of these early delinquencies soared to 4.2% of all mortgages, the highest in the data going back to 1999. This was up from 1.7% in April last year.<\/p>\n\n\n\n

From 60 to 89 days past due<\/strong>: As of April, this stage had not yet been impacted, with the rate remaining\u00a0relatively low at 0.7%\u00a0(up from 0.6% in April last year). This stage will jump in the report to be released a month from now when today\u2019s 30-to-59-day delinquencies, that haven\u2019t been cured by then, move into this stage.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

It Starts: Mortgage Delinquencies Suddenly Soar at Record Pace And this is just for April, the very beginning of the Pandemic\u2019s impact on housing. OK, it\u2019s actually worse. Mortgages that are in forbearance and have not missed a payment before going into forbearance don\u2019t count as delinquent. They\u2019re reported as \u201ccurrent.\u201d And 8.2% of all […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[16031,2339,827,4255],"class_list":["post-54168","post","type-post","status-publish","format-standard","hentry","category-economics","tag-mortgage-delinquencies","tag-mortgages","tag-united-states","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54168"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54168\/revisions"}],"predecessor-version":[{"id":54169,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54168\/revisions\/54169"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}