No, the delinquency rates of homeowner have not been increased

The delinquency rates of homeowner rise from record low levels, but are not even back to the levels of the pre-Covid-19. This weekend there has been a lot of discussion about social media about the delinquency data of homeowners. This situation encouraged me to write this article and bring a reality to this discussion, because the story that is being pushed is simply not true. It is not even a smart lie.

The discussion started with a social media post with the first graph below, so many believe that homeowners are under important stress. The data references Freddie MacThe serious delinquency levels on loans with multiple families. These loans relate to mortgages with multiple families, which are used for commercial properties with five or more units, such as apartment buildings. As always, you must carefully examine the data before you have closed something on the internet.

In particular, the percentage of multifamilie -after -the -end conditions is currently less than 1%, but it is at levels above the recession of 2008. However, there is a big difference between apartment loans and homeowners who have a 30 -year mortgage with fixed interest.

Some people try to imply that we have great stress in data owners data. But as we can see in the graph below, the data clearly identify it as loans with multiple families.

For information about homeowners and their delinquency percentages, we let us look at the most recent data from ICEIt shows that we are not even back to levels pre-Covid-19. Of their First Look report on March 21:

• “The national delinquency percentage increased in February 5 basic points (BPS) to 3.53%; that has risen 19 BPS from a year ago, but still 32 BPS below where it entered the pandemic.
• “FHA-Hypotheken accounted for 90% of the 131k year-on-year rise in the number of overdue delinquences, despite making less than 15% of all active mortgages.
• “4,100 homeowners in Los Angeles are now over as a result of the forest fires, compared to 700 in January, with daily performance data that suggests that the number could be higher in March.”

I prefer not to reflect on this misunderstanding, but I want to emphasize the importance of reading: the graph used to start this confusion specifically refers to data from multiple families.

It is remarkable that the total credit stress data for loans mentioned as serious denigration have not yet been found to even pre-Covid-19 levels.

Also, the shielding and bankruptcy data are not even back to levels pre-Covid-19.

I sincerely appreciate that everyone comes to me with questions about this subject – there can be a lot of confusing and misleading information that circulates, and it is clear that many people share similar concerns. Feel free to contact me on social media or on [email protected] If you want further clarification about the data. Your questions are important to me and I am here to help.