Mortgage Delinquency Rate Down, But Many Are Serious

Mortgage delinquency rate reached its lowest level since before the recession in June of 2021, at 4.37%. This is down from 7.6% in June of 2020, approximately a 42% decrease. The significant decrease can be attributed to both fewer new delinquencies as well as more mortgage holders catching up on payments.

That’s where the good part ends, though. A delinquency of over 90 days is considered a serious delinquency, and this category accounts for 3.2% of homeowners, or 1.55 million. This is a rather significant proportion given a total delinquency rate of 4.37%. And when forbearance programs end — which is slated to happen very soon, on September 30th — it’s likely that about two-thirds of these will still be behind on payments.

Photo by Dylan Gillis on Unsplash

More: https://journal.firsttuesday.us/1-million-serious-delinquencies-expected-as-forbearance-programs-expire/79179/

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