As the boom and bubble persists, we are starting to see more signs that it is 2006 all over again.
The Federal Housing Administration (FHA) mortgage delinquencies spiked in the fourth quarter for the time since 2006, a time when the housing bubble was on the cusp of popping. According to a report from the Mortgage Bankers Association (MBA)‘s National Delinquency Survey, the seasonally adjusted FHA delinquency rate jumped to 9.02 percent, up from 8.3 percent in the third quarter.
The serious delinquency rate, which are those that are more than 90 days past due or in foreclosure, stood at 3.13 percent. The overall delinquency rate, which are loans that are a minimum of one payment past due, stood at nearly five percent.
Researchers note that the increase was driven by mortgages made since 2014 and early-stage delinquencies.
It is unclear if something major is about to happen, but if the problems continue to pile up then it could impact United States taxpayers. The FHA insures low down payment loans and is favored by first-time homebuyers.