Mortgage Delinquencies Rise Most In 7 Years As Rates Spike

Tyler Durden's picture

For the first time since Q1 2013, mortgage delinquencies rose QoQ in Q4. The jump from 4.52% (of total loans) to 4.80% is the largest since Q1 2010 and hit as mortgage rates spiked following President Trump's election and Fed Chair Yellen's jawboning and rate-hike.

Of course, levels remain 'low' relative to the extreme highs of the financial crisis. One word springs to mind - "contained"


Worryingly rates remain high, inflation is surging, Yellen is set for more hikes, and real wages are dropping...

Doesn't bode well for Q1 2017.

But then again, it's probably nothing... "contained"

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FreeShitter's picture

Niggas are broke these days.....

FireBrander's picture

I know a person that I wouldn't loan $100 to given thier history of work and ability to handle money...yet, over the last 2 years, the banks have handed them $220,000 in mortgage, credit and car loans...NUTS!

saveUSsavers's picture

Can't wait to see their shit on the driveway

FireBrander's picture

Drove by a deluxe apartment complex yesterday..very pricy place to live...Sherrif's office was stacking someone's stuff along the sidewalk..other people (rough looking) were being held back from scavenging it by another officer. They must post somewhere the location and time of evictions; how else could those scavengers be onsite as it occurs? Maybe listening to scanners or something? Never seen people waiting for the Sherrif to fininsh like that.

SmittyinLA's picture

If you lived in CA you'd say the same thing except the bank gave them 600,000.00 in loans

Chupacabra-322's picture

@ Free,

"Niggas & Whites are broke these days....."

The Elite, not so much. Wonder how many of those delinquencies were from the .000000000001. Not so much.

FreeShitter's picture

We are niggas nowadays, white black, purple....the satanic elites have stripped us.

Got The Wrong No's picture

But white privilege makes us a lower form of niggas. Wees gots too pays for the  sinns of the 1%.

LawsofPhysics's picture

Will the primary dealer banks get another taxpayer funded bailout?

place your bets...

venturen's picture

WEll Gary Cohn has an answer for you

FireBrander's picture

Hell yes! The other option would be to let the banking system that's an option.

1. "bail in" of every dollar over the "insured" limit.

2. Uncle Sam fills in the rest.

natxlaw's picture

Not so fast there chief, FDIC doesn't necessarily cover it if they bail in.

gatorengineer's picture

The Graph and Mortgage rates are not related.  Delinqency is at least 90 days and possibly 180 in arears.  What the graph is showing is the busted consumer.  It will be real by summer

itstippy's picture

Thanks for the info - I wondered what the timeline is these days.

How long between Delinquency and filing foreclosure?

How long between foreclosure filing and eviction?

How long between eviction and house put on market?

At what point are delinquent loans deemed non-performing and removed from banks' asset columns?

natxlaw's picture

Nope, they will not. That's where I'd place my money anyway.

NugginFuts's picture

I keep telling my social climbing neighbors to delay buying the million dollar house up the road.... But I fear too many want to BTATH.

Good luck with that. 

saveUSsavers's picture

r.e been a FOMO market at least 18 mos around here, morons paying $400/sq ft +San Diego

CJgipper's picture

YOLO baby.


Yes, that's a joke, but in truth, if we keep waiting for the perfect time to do things, we never get to actually do them. Do what you can afford and enjoy your life.  That's the best anyone can really do.

BigFatUglyBubble's picture

Well, when we are living/eating in/out of dumpsters, at least there will be less brown people.  Thanks Mr. President!

FreeShitter's picture

I dunno about that. I cant see too many white folks eating out of dumpsters either. Im long dumpsters and the good shit, alpo.

froze25's picture

@BigFatUglyBubble, You guys still getting paid from "Correct the Record"? I noticed you only have been here 4 weeks. I think you missed the boat on cashing in on spreading fake news.

BigFatUglyBubble's picture

If it makes you feel better to think this is my first account, and that I am new, go ahead.

FireBrander's picture

"First account", "New"...well, I don't know...but CLUELESS>..yep, that you be.

Trump is a Narcissistic disaster...plain to explain to me why he demolished Hillary with a 60% win of the States an ~85% win of the counties? You really need to understand why...figure it out please.

Hint, all the reasons "everyone you know" are telling EACH OTHER, and you, as to why HIllary lost...well, they're wrong.

Let me know when you figure it out...I would tell you, but it's better to figure it out on your own; if you're capable of OPEN MINDED self teaching. I'll get you started.

If you wear an R or a D on your sleeve, you're a cult member.

BigFatUglyBubble's picture

Who said I wear an R or D on my sleeve?  You are making assumptions.  You went off on an OT tangent projecting things I never said.  What does your comment have to do with the original comment? 

FireBrander's picture

Poor reading comprehension...I said ">>IF<< YOU WEAR" what is on your sleeve..and why did Hillary lose?

BigFatUglyBubble's picture

Again, you assumed I wasn't aware of that.  What does this have to do with the thread or comment?  Why are you bringing up Hillary? 

Got The Wrong No's picture

If it makes you feel better to think this is my first account, and that I am new, go ahead.


So you admit that you are a bought and paid for scum bag Soros Troll. 

You clowns have no game. Now reply with you cagey nonsense and make those Soros Bucks. Troll Shit 

BigFatUglyBubble's picture

What do I have to do, to get you inside this Kenmoore 1100 Double-Door Refridgerator box, today? 

oddjob's picture

Yellen raising rates and people not being able to make mortgage payments on houses they never could have afforded in the first place, nobody could have seen this coming.

BigFatUglyBubble's picture

wait... hold on a second.  I'm having Déjà vu.

NM, it's probably nothing.

NeedleDickTheBugFucker's picture

That sums it all up in a nutshell.  People erroneously believe that the ability to "make the monthly payments" means that they can "afford" the good or service they wish to purchase.  Such a strategy is fine if you are a financial institution, corporation, or a sovereign nation because these entities will never be required to repay what they have borrowed.  Attention consumer borrowers: the low monthly payment meme is a diversion.  Focus on the amount of principal that must be repaid if you want to properly assess affordability.

Gorgeous's picture

Unless for them "able to afford" means able to consume, not able to own.  It's essentially rent.

Pigeon's picture

Waiting for Trump, because it sure wasn't going to happen on King Putt (fundamentally transform America)' watch. Now the media and Leftists can blame "capitalism" and "fascism" and whatever other name they heard from Soros.

angry_dad's picture
angry_dad (not verified) oddjob Feb 15, 2017 11:02 AM

people start sellin' when yellen starts talkin'

Hammer823's picture

Honestly. the 2008 mortgage crisis was the buying opportunity of a lifetime.

One could even say it was a "good" thing it happened.

So the above report is also good.

Hopefully we get another great buying opportunity like we did then.

I wouldn't count on it though.

The Baby Booomers owe$2 Trillion in taxes on their 401k accounts.

No way the government can afford to see that amount cut in half from a crash.

Why else do you think they rigged this last 3,000 point rally?


PT's picture

I got this retarded disability called "I can do maths".  It has held me back big time over the last 20 years, at least on paper.  Not to worry.  I'm quite sure I could not survive without this disability unless I had a super-power called "The-Powers-That-Be still want me to borrow more of their money".  I am now convinced it is impossible to prosper unless you have this super-power.  But it could just be sour-grapes on my part.

corporatewhore's picture

it was a good opportunity.

the only question I have is whether valid title was given pursuant to 500 years of real estate law.  MERS destroyed that concept and judicial fiat determined ownership.

i've given up on any legal challenge to MERS and title determination.  Home ownership is now just trading a piece of property like stawks.  you only occupy it and never really own it.

edifice's picture

My dad has some old TSAs paying guaranteed 4% interest. The contract holder (Morgan Stanley) calls him every month, trying to get him to renegotiate the contract, with some teaser rate of like 10% for the first year, then whatever the market rate is. They HATE paying him 4%. It really chaps their asses.

saveUSsavers's picture

R u talking about money the BORROWED from 401Ks?

saveUSsavers's picture

BULLSHIT ! It comes out incrementally, and many boomers ALREADY BORROWED 401Ks,

Not My Real Name's picture

If you think 2008 was a "buying opportunity" wait until you see the results of the next housing market pullback ... er, meltdown.

JohnGaltUk's picture

House prices will be going to Y2K or early 90's after this melt down.

cowdiddly's picture

How bout a round of Jingle Mail on the house.


moorewasthebestbond's picture

What do the cheerleaders at the NAR have to say about this?