The number of households missing mortgage or rent payments increased to 5.43M in October 2021.

More Households Skip Housing/Rental Payments in October 2021

More than 5M households missed their respective mortgage and/or rent payments in October 2021.  According to the Mortgage Bankers Association’s Research Institute for Housing America, (RIHA), 5.43M households skipped their rent or mortgage payments in October 22021 compared with the 5.33M households that missed their housing payments in October 2020.

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There was also a month-over-month increase in October 2021 compared with September 2021 when 4.71M households missed their housing payments.

Concern for Mortgage Servicers and Landlords

According to the MBA’s RIHA, 3.8% of homeowners missed their mortgage payment in October, up from 3.2% in September 2021 but down from the 5.7% of homeowners who missed their mortgage payment in October 2020.

Data indicated that 10.9% of renters missed, delayed, or made a reduced payment in October 2021.  In September 2021, 9.6% of renters skipped/delayed/made a reduced rent payment and 7.9% of renters did the same in October 2020.  The data also indicated that renters were approximately three times more likely than homeowners to miss housing payments.

According to Gary Engelhardt, an economics professor with Syracuse University, “…the sunset of government (pandemic) support programs, inflationary pressures, and the rising COVID-19 cases were all likely factors in the upticks in missed…payments in September and October.”

Since Q2 2020 through October 2021, missed mortgage payments totaled $83.9B.  Missed rental payments totaled $52.5B. 

The share of lenders accepting delays or reduced payments fell from 25% in Q2 2020 to 12% in October 2021.  The share of landlords accepting delayed or reduced rents dropped from 20% during Q2 2020 to 11% in October 2021.

Economic Outlook “Brighter” But Cautionary

It seems the COVID-19 pandemic continues to run the economy.  Edward Seller, executive director with RIHA and MBA’s associate vice president for Housing Economics, said that the overall economic outlook looks brighter but remains dependent on the course of the virus.

Seller said, “Continued job growth and wage gains – especially if they can offset inflation – are key to helping those households that are still facing hardships.”

Thanks to HousingWire and Mortgage Bankers Association’s Research Institute for Housing America.



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