Late car payments are on the rise. Pulling those numbers skyward are the delinquencies on subprime auto loans, which have risen 200% over the last four years to an all-time high. Delinquency on commercial office space payments has risen from 1.2% twelve months ago to 11.2% this month. For some perspective, that 11.2% is higher than the delinquency rate during the great recession some 17 years ago.
Home prices are down 0.2% from last month and up 1.2% from this time last year, according to Cotality. They also forecast that prices will rise 4.1% over the next 12 months, as interest rates (hopefully) head south.
Looking at the technical picture for current mortgage rates, mortgage backed security pricing has dropped 41bps over the last four trading sessions and now sits astride the 50 day moving average. Obviously we’re looking to hold ground here if at all possible. Mortgage interest rates have risen 0.125% to 0.375% since the Fed lowered their overnight rate last Wednesday.
