Sky-high home prices and rising mortgage rates are putting increasing pressure on homeowners. That’s the conclusion of two reports released this week showing foreclosure activity and mortgage delinquency rates are rising.
according to Mortgage Bankers Association (MBA) data showed that the delinquency rate for mortgages on one- to four-unit residential properties increased to 3.97% in the second quarter of 2024 on a seasonally adjusted basis.
Meanwhile, July’s foreclosure report comes from to us Sends a similar painful rising signal. The company’s data showed that foreclosure filings of all types were up 15% from the previous quarter, although they were only up 0.2% compared with July 2023.
The data suggests that more and more U.S. homeowners are struggling to stay in their homes, while market conditions are theoretically hottest for those who buy after mortgage rates rise.
The MBA reported that mortgage lending across all stages of delinquency increased by 3 basis points (bps) on the quarter, but was up 60 bps compared with the second quarter of 2023. basis points, 165 basis points for federal housing administration (FHA) loans and 93 basis points U.S. Department of Veterans Affairs (Virginia) Loans.
“Mortgage delinquency rates have increased across all product types compared to this time last year,” Marina Walsh, MBA’s vice president of industry analysis, said in a statement. “While delinquency rates remain low by historical standards, they have recently The increase corresponds with rising unemployment, which has historically been closely linked to mortgage performance.”
In terms of foreclosures, the amount of properties repossessed by lenders due to completed foreclosures increased by 14% in July compared with June, but decreased by 2% year-on-year.
“July’s foreclosure activity reflects modest changes in the housing market,” Attom CEO Rob Barber said in a statement. “These shifts may highlight growing stress in some areas. However, home prices appear to be continuing to soar, Home values are soaring across the country, boosting homeowners’ equity at nearly every stage of their mortgage repayment journey. Monitoring the coming months will help us better understand the impact on the housing industry.
Geographically, there are differences between mortgage delinquencies and foreclosure activity.
The states with the largest quarterly increases in delinquency rates were primarily in the South, where housing costs are relatively affordable. Mississippi (up 58 basis points), Louisiana (+54), Indiana (+53), Ohio (+53) and West Virginia (+52) lead the nation.
But states with the highest foreclosure completion rates tend to be those with the highest housing costs. They are led by Delaware (1 in every 2,214 homes filed for foreclosure last month), Nevada (1 in every 2,245 homes); Utah (1 in 2,289 people) 1 person), New Jersey (1 in 2,607 people) and Illinois (1 in 2,660 people).
