Mortgage delinquencies recently rose for the first time since the first quarter of 2012, according to the Fitch Fundamentals U.S. Index.
U.S. residential mortgage delinquencies rose to nine basis points in the fourth quarter of 2013, but they are almost 2% from their peak in 1Q 2012.
“This is a minor increase, which we believe is a blip in the long-run trend of falling delinquencies, but it does highlight the slowdown in the improvement in prime mortgage performance,” the ratings agency said in a report Wednesday.
There may be more “blips” like this over the next five years, according to Fitch. It projects it will take that long to clear out the current stock of delinquent loans.