The volume of loans that has undergone an event of default for the year to October reached USD 72.7bn, marking a 26% rise compared with a total of USD 57.6bn for the whole of 2023, and has even overtaken the default volume reached in 2020 by 12%.
WASHINGTON, D.C. (November 7, 2024) — The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased slightly to a seasonally adjusted rate of 3.92 percent of all loans outstanding at the end of the third quarter of 2024 compared to one year ago, according to the Mortgage Bankers ...
CoreLogic: US Overall Delinquency Rate Continues to Trend Upward in 2024. The share of loans 30 or more days past due in September increased year over year.
For mortgages, while there has been a moderate rise in mortgage delinquencies, they remain below pre-pandemic levels. Mortgage delinquencies rose from 1.4% during Q3 2021 to 3.2% by Q1 2024. The pre-pandemic average mortgage delinquency rate was 3.5%.
Household Debt Rose Modestly; Delinquency Rates Remain Elevated. NEW YORK—The Federal Reserve Bank of New York's Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit. The report shows total household debt increased by $147 billion (0.8%) in Q3 2024, to $17.94 trillion.
Other states with high rates of missed payments include Alabama and Arkansas. At the opposite end of the spectrum, the West Coast has the lowest share of mortgages more than 30 days delinquent, with Washington, Oregon, and California all reporting rates of delinquent mortgages under 1.5%.
Key Takeaways. We expect the U.S. leveraged loan default rate to fall to 1% by September 2025, from 1.26% in September 2024.
WASHINGTON, D.C. (August 15, 2024) – The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.97 percent of all loans outstanding at the end of the second quarter of 2024, according to the Mortgage Bankers Association's (MBA) National Delinquency ...
NEW YORK -- Credit card defaults are on the rise for Americans, reaching the highest level in 14 years. U.S. credit card defaults jumped to a record $46 billion from January through September 2024, according to the Financial Times, citing data analyzed by BankRegData.
(NewsNation) — Mortgages make up the bulk of household debt but a new analysis shows most Americans owe thousands of dollars beyond their home loans, with members of Gen X carrying the highest balances.
While many older homeowners own their properties free and clear of a mortgage payment, this is not a feasible reality for many seniors. In fact, more than 10.5 million Americans at or over the age of 65 still pay into a forward mortgage loan, according to a study conducted by LendingTree.
Nearly 1 in 2 credit cardholders carry debt month to month. In November 2024, 48 percent of American credit cardholders told Bankrate they carry a credit card balance from month to month. That's compared to 50 percent who said they did in June 2024 and 49 percent who did in November 2023.
The overall arrears rate for residential mortgages appears to be plateauing, with some regions such as the South West recording a pronounced decline in the arrears rate. Alongside the encouraging arrears data, the number of new originations remains solid, with falling interest rates starting to have a modest impact.”
If you're on a variable rate home loan, your repayments will increase as a result of higher interest rates. If you have a fixed rate home loan, your repayments won't be affected until the end of your fixed term. You will only likely experience higher repayments once you come off your fixed loan.
For only the third time in 2024, the Federal Reserve has lowered the federal funds rate. On Dec. 18, the Fed cut the rate, which influences interest on everything from car loans to credit cards, by 25 basis points. That takes it from 4.50% to 4.75% to 4.25% to 4.50%, the lowest it's been since February 2023.
Similarly, states along the Pacific Coast—where home values skyrocketed during the pandemic—have some of the lowest rates of free-and-clear homeownership among the working-age population. California (22.7%), Washington (22.8%), and Oregon (22.9%) sit at 45th, 44th, and 43rd out of all 50 states, respectively.
Financial Status
Borrowers with zero or negative net worth are over twice as likely to experience default compared with borrowers with a higher asset-to-debt ratio. Families with fewer assets and more debt may be less able to withstand financial shocks, which could cause them to struggle with repayment.
However, nearly every economic forecast is predicting lower rates in 2024. The Mortgage Bankers Association's Mortgage Finance Forecast for September 2023 predicts 30-year fixed mortgage rates will be in the 5% range for most of 2024: Q1: 6.1%
S&P Global Ratings Credit Research & Insights expects the U.S. trailing-12-month speculative-grade corporate default rate to fall slightly to 3.25% by September 2025 from 4.4% in September 2024 (see chart 1).
Credit Ratings
The safest bonds—AAA, AA, A, and BBB—have a one-year probability of default that is less than 0.1 percent. 4 Speculative-grade bonds—BB, B, and CCC—are considerably riskier.
Homeowners are struggling to afford their mortgages, and the problem is only getting worse, according to new data from Freddie Mac. Single-family serious delinquencies surged in September, while multi-family serious delinquencies also saw an uptick for mortgages.
Of the 22.4 million renters who are rent-burdened, the study found that roughly half of them are spending more than 50% of their income toward rent.