As featured on Urban Turf
Last week, UrbanTurf asked how rising mortgage rates might effect the housing market, especially where home value growth and mortgage affordability are concerned. Now, recent data suggests that the rise in rates has already impacted the market, specifically causing an uptick in mortgage delinquencies.
Mortgage delinquency rates quarter by quarter
According to Zero Hedge, mortgage delinquencies increased as a share of total mortgages quarter-over-quarter in the fourth quarter of 2016 for the first time since 2013.
Mortgage rates relative to delinquency rates
Delinquencies went from being 4.52 percent of all mortgages in Q3 to 4.8 percent in Q4. This jump occurred just as 30-year mortgage rates rose to 4.32 percent in the first quarter of 2017; mortgage rates are expected to rise to between 4.75-5 percent by the end of the year.