Dive Brief:
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After dropping to a seven-year low in October, the rate of mortgage delinquencies reversed course in November and rose to its highest level in 10 months, according to Black Knight Financial Services.
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The rate of delinquencies surged by 12% between October and November. A home loan is considered delinquent if it is more than 30 days past due but not yet in foreclosure.
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At the same time, the inventory of foreclosed properties declined to its lowest level since 2008, Black Knight reported.
Dive Insight:
The good news about foreclosures is likely to be short-lived. The reason: A growing number of mortgage delinquencies often is the precursor to greater foreclosure activity, as homeowners who get behind on their loan payments can have trouble catching up—leading their banks to foreclose on their homes.