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”
