The CDC is taking steps to extend the national eviction moratorium that is scheduled to expire at the end of March. (CNBC)
The CDC has sent a proposal to the Office of Management and Budget for regulatory review, which experts say indicates that the health agency is taking steps to keep the protection in place as coronavirus cases surge in many states and millions of Americans remain behind on their rent.
Yesterday, we reported that new data from Freddie Mac found that 63% of renters’ were concerned about making housing payments. Homeowners’ concern was at 41% last month. The concern is understandable when looking at current projections on late housing payments. An analysis from Mark Zandi and Jim Parrott showed the typical delinquent renter now owes $5,600, being nearly four months behind on their monthly payment. This also includes utilities and late fees. In total, an astounding $57.3 billion is owed.
The good news is Black Knight’s monthly mortgage report actually showed a slight decline of seriously delinquent mortgages. However, the national mortgage delinquency rate did rise in February from 5.85% to 6.0% because of early-stage delinquencies. (BK)
Black Knight was not alone. The Mortgage Bankers Association’s latest forbearance survey showed loans now in forbearance decreased by 9 basis points to 5.05% as of March 14, 2021. (MBA)
It is obvious from Zandi and Parrot’s analysis that we could see a major eviction wave among renters if the moratorium is lifted. However, it should be noted, that looking at the latest data from Black Knight and MBA that any concerns about a housing foreclosure crisis are note borne out by the evidence.