The United States Mortgage Banking Industry Association (MBA) reported that the proportion of overdue mortgages in the United States as of May 10 rose to 8.16%. This means that 4.1 million mortgage borrowers in the country missed a loan payment and asked for a deferment.
“The increase in the number of applications for deferral slowed down in early May, but the share of such loans increased,” said Mike Fratantoni, chief economist at MBA. He notes that while the current record low mortgage rates in the United States help to stem the growth of late payments, his agency “continues to closely monitor the dynamics of such borrowers. However, if the economy continues to gradually open, the situation may stabilize, ”the representative of the association said.
The share of overdue mortgage payments is growing in the US amid falling incomes due to quarantine measures to combat coronavirus. The US unemployment rate soared to 14.7% in April against 4.4% recorded in March. According to the Ministry of Labor, over the month 20.5 million people lost their jobs: the number of jobs in the private sector fell by 19.5 million, and in the public – by 980 thousand.
The USA leads the world in the number of victims of coronavirus: more than 1.5 million of their citizens fell ill with COVID-19, more than 90 thousand died. In total, 4.9 million infected with coronavirus were recorded in the world, 323 thousand people died, 1.6 million recovered.