There are several signs that Americans are continuing to slowly recover from the financial effects of the global pandemic. In November 2021, the most recent date for which statistics are available, home loan delinquencies fell 2.3% year-over-year from November 2020.
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Research from global property information, analysis and data provider CoreLogic showed mortgages were at their lowest default rate since the start of the pandemic, with just 3.6% of all US home loans that are 30 days or more overdue. This is the same rate reached in March 2020 at the start of the coronavirus pandemic.
Similarly, foreclosure rates remain at historic lows, even after the government lifted the moratorium on foreclosures in the summer of 2021. Several states, including New York, maintained moratoria on foreclosures through January 2022.
However, the CoreLogic report indicates that high home values and record interest rates are also attributed to low foreclosure rates. People have been able to borrow against their home equity to avoid falling behind on mortgage payments, avoiding foreclosure even in the face of potential job loss and other financial challenges.
Additionally, the number of jobs continued to rise in 2021, helping to rebuild incomes and help families get their home loans up to date. Dr Frank Nothaft, chief economist at CoreLogic, said in a report on the company’s website: “Income growth has helped lower delinquency rates and home equity accumulation has reduced the likelihood of a hard sale for families experiencing financial difficulties. .”
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The states with the biggest change in home loan default rates since November 2020 are:
- New York.
Each of these states saw a drop of 2.1% or more in crime rates between November 2020 and November 2021.
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