- US home-mortgage delinquencies in May surged to the highest level since November 2011, Black Knight said in a Monday report.
- Total borrowers more than 30 days late skyrocketed to 4.3 million in May from 3.4 million in April, the report said.
- More than 8% of all US mortgages were past due or in foreclosure, according to Black Knight.
- Read more on Business Insider.
US home-mortgage delinquencies surged to the highest level in nine years in May as the coronavirus pandemic continues to hit families' finances, Black Knight said in a Monday report.
Total borrowers more than 30 days late surged to 4.3 million in May after a record jump to 3.4 million in April, Black Knight said. In addition, more than 8% of all US mortgages were either past due or in foreclosure, the report said.
The report also included homeowners who missed payments even though they had forbearance agreements, which allow six months of deferral without penalty.
Many borrowers who qualified for forbearance plans initially made payments, though the percentage has declined since the start of the pandemic — 15% of homeowners in forbearance plans had made payments as of June 15, down from 28% in May and 46% in April.
Though the jump in delinquencies was less than the record spike in April, there's still much uncertainty because of the coronavirus pandemic. While all US states have moved forward with reopening efforts, spikes in new COVID-19 cases in some areas have led to fears that the pandemic could further decimate the economy.
The government stimulus that's kept some families afloat during the pandemic is also set to expire soon; the additional $600 per week that unemployed Americans have been collecting is set to stop at the end of July. More than 20 million Americans filed continuing claims for unemployment insurance in the week that ended on June 6, the Labor Department said.
Mississippi had the highest rate of delinquencies in May, followed by Louisiana, New York, New Jersey, and Florida. according to Black Knight.