Recent data reveals a disturbing rise in delinquencies, driven by reductions in income, unemployment, and excessive obligations. The trend toward over 180,000 90+ day delinquencies in Q4 is deeply alarming and could potentially set a new record high for this cycle. This surge in delinquent payments echoes the harrowing days of the 2008 financial crisis, where countless homeowners struggled to keep up with their mortgages.
Increased delinquencies are not just a personal financial issue—they carry broader economic risks. As more homeowners default, the likelihood of foreclosures rises, threatening to depress home prices and destabilize the housing market. The ramifications of these trends are profound and far-reaching.
And it looks like we are trending towards over 180,000 90+ Day Delinquencies in Q4.
A new record high for this cycle. Like 2008, no one can afford the house they bought. t.co/kGROqyrSWH
— QE Infinity (@StealthQE4) September 23, 2024
Sources:
www.hud.gov/sites/dfiles/Housing/images/FHALPT_Jan2024.pdf
www.hud.gov/sites/dfiles/Housing/images/FHALPT_Dec2021.pdf
www.hud.gov/sites/documents/DOC_14710.PDF