Just as mortgage delinquency was about to finish its 12th straight month lower, loan performance took a turn for the worse. But one expert sees the increase as just a blip on the screen.
In the latest report from Standard & Poor’s and Experian, residential first-mortgage delinquency of at least 90 days climbed to 3.05 percent during November from October’s 2.91 percent.
It was the first time delinquency has risen since December 2009.
In November 2009, first-mortgage delinquency was around 4.68 percent, according to the data presented.
The report was based on data from $11 trillion in outstanding loans owed to or serviced by 11,500 lenders.
On second liens, 90-day delinquency was 1.80 percent, inching up from October’s 1.79 percent. The rate on seconds was around 3.60 percent in November 2009.
“The deterioration in the mortgage sector may be temporary,” said David M. Blitzer, managing director and chairman of the index committee. “Rates of new defaults have been declining for over a year with occasional brief interruptions.”
As Florida markets continued to struggle, defaults in Dallas were lower than in October.
Overall consumer delinquency, based on the Composite Index, was 3.13 percent, up 10 basis points from October.
