Walsh attributed the rise in delinquencies to several factors: “Higher unemployment, lower personal savings, increases in property taxes and insurance, and a run-up in credit card debt and delinquency have made it tougher for some homeowners to make their mortgage payments.”
The delinquency rate for conventional loans rose just one basis point quarter-over-quarter to 2.62%. For FHA loans, it decreased 42 basis points to 10.39%, while for VA loans it jumped 59 basis points to 4.66%.
Year over year, total delinquencies were up 18 basis points for conventional loans, 112 basis points for FHA loans, and 68 basis points for VA loans.
“At the end of 2023, the Department of Veterans Affairs encouraged mortgage servicers to implement a foreclosure moratorium until the end of May 2024,” Walsh explained. “With this pause came an increase in VA loans that remained delinquent, but not in foreclosure inventory.”
