For the first time in 20 years: the coronavirus caused a sharp jump in delinquencies on the mortgage

At that time, as the impact of the pandemic of the coronavirus in the housing market in the US is still estimated using the received data, a new report shows that an unusually large number of homeowners cannot fulfill your mortgage payments. This writes Fox Business.

Впервые за 20 лет: коронавирус вызвал резкий скачок просрочек по ипотеке

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According to a recently published report by research company Black Knight, working on data about the property in March of overdue debt on mortgages rose more than 3.3 percent. This is the first in this century such a drastic increase for March which is traditionally considered to be financial prosperous month in the United States. The mortgage payment is considered past due if payment is delayed 30 days or more.

As a rule, March is an especially strong month because people get tax refunds, so overdue borrowers to easily pay the payments.

These figures do not only contrast sharply with the trends of the mortgage market, usually observed in March, but differ from the data previously registered in the year 2020, which gives an idea of how an outbreak of coronavirus has affected housing in the United States. The quarantine came into force only in mid-March.

Decrees about the isolation, and the resulting massive wave of layoffs has led to the fact that the national foreclosure and 90-day overdue payments reached new record lows. The Deposit has also jumped by 40 percent due to historically low interest rates on mortgage loans.

Meanwhile, an increasing number of homeowners to enter into agreements to defer payments. As of April 16, more than 2.9 million homeowners entered into such a contract, and that 5.5 percent of all mortgage loans, approximately $651 billion in unpaid principal amount.

Deferred payment is when the lender allows the mortgage holder to suspend or temporarily reduce the payments, expecting that all will be repaid in full over time.

The package of measures to stimulate the population to a few million dollars taken by the legislators was a call to lenders to allow people to suspend payments if they experience financial difficulties in connection with the coronavirus.

As previously wrote ForumDaily:

  • The number of people fired during the quarantine due to the mers continues to grow to historic highs. In just five weeks the number of applications for unemployment benefits amounted to more than 26 million Is more than the increase in the number of jobs over the last 10 years after the great recession.

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