It's a small increase and we would need to see several more to call it a trend. FHA loans, which are the 3.5% down loans are the ones to watch.
The Freddie Mac delinquency rate increased 1 basis point in July to 3.51%, the first increase since November.
The rate is a percentage of the mortgages backing securities Freddie Mac guarantees. Freddie cut its guarantee book every month since February 2010. It dropped below $1.7 trillion in July, a $9 billion reduction from the previous month and the lowest point since October 2007, according to the Freddie monthly summary.
"The falling denominator is a principal reason the serious delinquency percentage ticked up during the month," said Jim Vogel of FTN Financial.
A spokesperson for Freddie said there was also a slight uptick in seriously delinquent loans, but it was nearly offset by a dip in delinquent mortgages transitioning to REO.
New Freddie Mac purchases and issuance dropped to $20.7 billion in July, the lowest monthly amount since October 2008.Read it all