Recent discussions about rising homeowner delinquency rates have been misleading, confused with multifamily loan data which shows low delinquency rates. While multifamily delinquencies are indeed above 2008 recession levels, homeowner delinquencies have not returned to pre-pandemic levels, indicating that the perceived stress on homeowners may be overstated. The national delinquency rate rose slightly in recent months but remains below pandemic levels, primarily affected by FHA mortgages, which make up a small portion of total loans. Overall, the discussion requires careful examination of data context.
"The rate of multifamily delinquencies currently stands at under 1%, but it is at levels above the 2008 recession. However, there is a big difference between apartment lending and homeowners who have a 30-year fixed-rate mortgage."
"Notably, the national delinquency rate edged up 5 basis points to 3.53% in February; that's up 19 bps from a year ago but still 32 bps below where it was entering the pandemic."
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