Jul 16, 2020 - Economy

The housing delinquency crisis hasn't started yet

Data: CoreLogic; Chart: Axios Visuals
Data: CoreLogic; Chart: Axios Visuals

The share of mortgages that went from current to 30 days past due rose to 3.4% in April, the highest reading on record, data firm CoreLogic reported this week. The previous peak in the transition rate was 2% in November 2008.

Yes, but: CoreLogic's data doesn't track whether the delinquencies were related to missed payments or forbearance programs.

  • "The CARES Act provided forbearance for borrowers with federally backed mortgage loans who were economically impacted by the pandemic," CoreLogic noted.
  • "Borrowers in a forbearance program who have missed a mortgage payment are included in the CoreLogic delinquency statistics, even if the loan servicer has not reported the loan as delinquent to credit repositories."

Where it stands: The share of mortgage holders in forbearance jumped from less than 1% in the last week of March to around 8% in the last week of April, MBA's data show.

Zoom in: The vast majority of Americans living in apartments paid their rent in July, according to the National Multifamily Housing Council’s Rent Payment Tracker.

  • As of Monday, 87.6% of apartment households had made a full or partial rent payment.
  • That represented a 2.5-percentage point decrease from the same time last year and was 1.4 percentage points below the share that had paid by this time last month.
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