A rising cost of living is making it difficult for Americans to pay off their mortgage debt, or even purchase a home altogether.Yet interestingly, mortgage delinquencies are at near-record lows. In the first quarter of 2024, the proportion of single-family residential mortgages in delinquency fell to 1.7%. By comparison, delinquencies spiked more than 11% during the global financial crisis. This resilience is partly due to homeowners locking in low rates before interest rates surged, sheltering them from the higher cost of paying off debt.This graphic shows the financial reasons that Americans can’t pay their mortgage in 2024, based on data from the U.S. Department of Housing and Urban Development.Often, cash-flow problems spurred by negative life events are the primary catalyst for mortgage delinquencies. A separate study shows that they were responsible for 70% of underwater mortgage defaults between 2008 and 2015, while strictly negative equity caused just 6% of these defaults. Underwater mortgages are defined as those where the principal owed on a home is worth more than the home value.In many ways, this challenges the previously held belief that negative equity heavily triggered U.S. mortgage delinquencies during the global financial crisis.
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23 sats \ 0 replies \ @jakoyoh629 2 Aug
It's a very stressful and depressing situation not being able to pay.
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