This is a YouTube video titled "Mortgage Delinquencies on the Rise?! 🤔" containing a monologue or presentation from November 25, 2023, discussing recent trends in mortgage delinquencies, the impact of COVID-19 forbearances and stimulus payments, and providing context to interpret the rise in delinquencies as a return to normal levels rather than a crisis.
You may be hearing that mortgage delinquencies are on the rise for the first time in the last three years. And while that is true, like always, you have to look into it a little bit more than this. So from 2010 to 2020, the average mortgage delinquency was about six and a half percent of homeowners. And then 2020 happened and Covid came about. In the wake of COVID there were forbearances where the government allowed people that were falling behind to take a little bit of a pause, take three or six months off of their mortgage payments to get back on track, and they just tack those payments on to the end. So this prevented what would have been a lot of delinquencies then. And then you had stimulus cash hitting the economy for the next year or so, which also kept people afloat. Well, now that forbearances are no longer a thing and stimulus money's gone, it's now starting to reveal itself a little bit more and get back to just a little bit more of a normal pace, because the last couple of years, mortgage delinquencies are around 2%. So super, super low. They just upticked to 3%, but still we're at 3%. And the average for the last 10 years was 6.5% of homeowners being delinquent on their home loans. So we're still less than half. What's Norma. I wouldn't say this is an uproar or something to be super concerned about. The housing market's strong. We're just getting a little bit of normalcy back. So again, take a little bit deeper, look into some of the headlines. It's not as scary as it may appear. We've been way worse than this for 10 plus years and haven't had any issues.
