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How Many Homeowners Could Miss Mortgage Payments?

borrower outreachAccording to a survey from Freedom Debt Relief, 90% of Americans say their financial situation has been impacted by the COVID-19 pandemic to some extent. Nearly a third (32%) of participants say they have experienced a reduction in pay or work hours due to the pandemic.

Of the survey respondents, 65% say that the pandemic relief check is not enough to get them through the current economy, and 45% report that they already are struggling to make their rent or mortgage payments.

Another 36% say they will likely miss their mortgage or rent payment within the next six months.

Respondents from New York, although New York City has become one of the epicenters of COVID-19 in the United States, did not report feeling that the wider economic conditions have deteriorated as much as participants nationwide. Only 55% of NY respondents argued that the current economic conditions in the U.S. were very poor or poor versus 66% across all participants, while 45% felt that the conditions were good or very good, over ten points higher than the nationwide sample at 34%.

On the week ending April 25, the advance figure for seasonally adjusted initial unemployment claims was 3,839,000, a decrease of 603,000 from the previous week's revised level, according to the latest data from the Department of Labor. The previous week's level was revised up by 15,000 from 4,427,000 to 4,442,000. The 4-week moving average was 5,033,250, a decrease of 757,000 from the previous week's revised average. The previous week's average was revised up by 3,750 from 5,786,500 to 5,790,250.

“As with the prior weeks, a few caveats make this week’s data difficult to interpret precisely,” said Doug Duncan, Chief Economist at Fannie Mae. “On one hand, UI eligibility rules have been relaxed recently, increasing the number of people who are able to apply. This makes it difficult to estimate the uninsured unemployed share of the workforce. On the other hand, many states reported a significant backlog of UI applications due to a lack of processing capacity, indicating that this week’s release may understate the true extent of insured layoffs.”

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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