Delinquency rate spikes in June

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The share of mortgage loans that have missed at least one payment rose by nearly 10 percent month to month in June, reversing a trend of declining delinquency rates. But the usual seasonal jump in delinquencies from the first to the second quarter was smaller than in prior years: 1.3 percent. Delinquencies fell 6.5 percent on a yearly basis. The delinquency rate stood at 6.68 percent of all loans in June.

The June increase in delinquencies affected all states and loan types and was driven by more than 700,000 borrowers who had been current but missed their June payment. The number of seriously delinquent loans — those with at least three missed payments or in foreclosure — continued to fall, down 1.5 percent month to month and 22.3 percent year over year. Only 0.71 percent of loans that were current six months ago were seriously delinquent in June, down from a 2.89 percent peak in January 2009 and close to a pre-crisis average of 0.55 percent.

Source: LPS Mortgage Monitor