Rising Mortgage Defaults: A Growing Trend in the Market

Mortgage defaults are beginning to become more prevalent in the market, according to a broker. This trend is expected to continue in the near future.

Mortgage Default Trends

Mortgage defaults have been on the rise in recent years. According to the Mortgage Bankers Association, the delinquency rate for mortgages rose from 4.71% in 2018 to 5.17% in 2019, representing an increase of 8.9%. This trend is expected to continue into 2020 due to the economic downturn caused by the COVID-19 pandemic. Additionally, according to CoreLogic, mortgage defaults are expected to reach a peak of 6.6% by October 2020, with an estimated 3 million homeowners at risk of defaulting on their mortgages. As such, it is important for lenders and borrowers alike to be aware of these trends and take proactive steps to ensure that mortgages remain affordable and sustainable for all parties involved.
You might also like this article: Studie: 39% der Lebensmittelhersteller thematisieren vegane Produkte.
Picture source: Richard Horvath