This huge American city has the most overdue mortgages – 24/7 Wall St.

The real estate market is on fire. Demand has exploded. People quickly moved from the expensive cities on the east and west coasts to those in the interior with a perceived better quality of life. The COVID-19 pandemic has helped speed up the process. Millions of Americans can work from home, and many will not be recalled. Extremely low mortgage rates have allowed people to increase the prices of homes they may not have been able to afford in the past. All of this led to a supply limited enough to cause bidding wars for houses. However, all is not well. Even in the best markets, there are problems.

CoreLogic is one of the nation’s most trusted real estate search companies. It just released its CoreLogic Loan Performance report, which covers mortgage performance through April. Some of the topics covered include mortgage defaults, particularly those involving homes with more than 30 days past due. CoreLogic Chief Economist Dr Frank Nothaft points out that among the hardest hit areas are those where people from struggling oil and gas industries operate and places plagued by natural disasters.

Overall, 4.7% of all mortgages in the United States were more than 30 days past due in April. This is a huge drop from 6.1% in the same month the year before. Some states are still above 6%. These include Louisiana (7.8%), Mississippi (7.1%), New York (7.1%), Maryland (6.3%) and New Jersey (6.2 %). However, in every state there is a marked improvement over April a year ago.

The demand for housing most likely means that people who cannot afford it now can sell it quickly. Frank Martell, President and CEO of CoreLogic, explains the following:

The sharp rebound in the economy, along with a powerful combination of government tax and regulatory support, is fueling unprecedented demand for residential housing and enabling people to buy and stay in their homes. Another manifestation of the benefits of these tailwinds is falling delinquency rates. Barring an unforeseen change, we expect rates to continue to fall and home prices to rise over the next 12 to 18 months.

There is also a wide range of serious delinquency rates in the 10 largest cities in the country. “Serious” delinquency refers to mortgages that have not been paid for 90 days or more. The lowest is San Francisco at 2.0%. The highest is Miami at 5.8%. CoreLogic offers no explanation for the large discrepancy.

Click here to see the cheapest cities in which to buy a home.

About Daisy Rawson

Check Also

Amir Mehr ’92 Honored with Distinguished Alumni Award

By Lea Hart Amir Mehr’s time at North Carolina State University was not just a …

Leave a Reply

Your email address will not be published.