- US home mortgage delinquencies climbed in May to highest level since November 2011
- Number of borrowers more than 30 days late rose to 4.3M, according to Black Knight
- +8% mortgages past due or in foreclosure
After some years of historically low mortgage delinquencies, US home mortgages either past due of in foreclosure this past May rose to more than 8%. The number of borrowers since May who is more than 30 days in arrears rose to 4.3M, according to Black Knight, a property information service.
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With home mortgage delinquencies now at the highest level since November 2011, this situation could become quite precarious due to the spread of new COVID-19 cases around the country and the coming expiration of unemployment benefits and eviction bans.
During the first week of June, approximately 20.5M jobless workers filed continuing claims for unemployment benefits, according to the US Labor Department. Additionally, only 15% of the 4.3M homeowners currently in mortgage forbearance made any home payments as of June 15, down from 28% in Mat and 46% in April
Black Knight also reported that:
- Mississippi had the highest delinquency rate in May with the states of Louisiana New York, New Jersey and Florida following in Mississippi’s footsteps
- New York’s share of the delinquency rate rose to 11.3%. Its delinquency rate peaked at 13.9% in December 2012
- New Jersey’s delinquency rate in June as 11% compared with 13.9% in December 2012
- New Jersey’s share of the delinquency rate rose to 11% compared with a peak rate of 16.8% in December 2012
- Florida’s delinquency rate in June hit 10.5%. Its previous peak was 25.4% in January 2010.
Thanks to Black Knight, HousingWire and BloombergNews.
Also read: Close to 500,000 Borrowers Moved into Forbearance Third Week in April, How Pandemic Has Affected Mortgage & Rent Payments, New Single-Family Home Sales Spike in May; Existing Home Sales Plunge