Mortgage Delinquencies Fall To 7.65% While Mortgage Foreclosures Decline To 0.59% (Covid /= Disaster For Mortgage Markets)

by confoundedinterest17

Covid-19 has been a disaster TEMPORARILY for the US economy, but the US economy is resilient. According to the Atlanta Fed’s GDPNow real time GDP is now at 3.514%, higher than GDP before the Covid outbreak.

While the US mortgage market saw a rapid increase in mortgage delinquencies thanks to Covid, it did not materialize into a foreclosure wave as did during the financial crisis.

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The reason why? Forbearance. And loans in forbearance has been gradually declining.

So unless states and cities continue their Covid lockdowns, we should see a normalization in mortgage delinquencies.