Roughly 4,1 million Americans are belated with their mortgage payments, the Mortgage Bankers Association reported. Number of requests for deferred payments has reached record-high levels. Yet, there are signs that the situation could settle down soon as the speed of submitted applications drops.
As of May 10, volume of all those in forbearance has increased to 8.16%, while the level was below 8% only a week ago. In the overall volume, roughly 0,3% mortgages are belated. “The numbers have lowered compared to April volumes despite negative economic data, including remarkably high unemployment,” Mike Fratantoni, chief economist for the Mortgage Bankers Association, said in a press release.
According to estimations by Oxford Economics, a British analyst company, up to 15% of homeowners may fall behind on their monthly mortgage payments. It will greatly depend of the speed of American economy recovery and whether unemployment rate begins to drop from current record-high levels.
