After declining to the lowest level of any quarter during the prior 16 years, credit risk on new single-family loans rose. Rising rates contributed to the deterioration.

The Housing Credit Index, which is a measure of trends for six mortgage credit risk attributes on new originations, was 105.6 as of the first quarter of this year.

That was worse than in the previous three-month period, when the index was at a level indicating that loan quality was the highest it had been since 2001.

Source: Mortgage Daily