In the fourth quarter of 2016, FHA mortgage deinquences spiked for the first time in 10 years.
In Q3 2016, FHA delinquences were 8.3% and the lowest since 1997. However, in Q4 2016, the delinquencies increased to 9.02% according to the Mortgage Bankers Association. These delinquencies are a result of early stage delinquencies, meaning that they are just a little over 30 days late. Most of these are for mortgages from 2014 or newer.
The increase may be a result in the decrease in credit scores among FHA borrowers over the past few years.
Though this looks like a small increase, It bears watching to see if it is the beginning of a new trend that could indicate a general softening in the real estate market.