32% of U.S. households missed their July housing payments
1–10 of 17 posts
Re: 32% of U.S. households missed their July housing payments
#2Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
Re: 32% of U.S. households missed their July housing payments
#3Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
I've had a few people I know put in for deferments simply because they were available. I'm going to be more concerned in 3 months or so when these options are off the table.
Re: 32% of U.S. households missed their July housing payments
#4Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
So the payments get deferred, but if families aren't earning any money (e.g. lost job or furloughed) for these missed months, how will they catch back up? Where does the extra money come from?
Re: 32% of U.S. households missed their July housing payments
#5Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
We'll find out soon the real numbers, but if you wait for a balloon payment, odds increase of not having the cash (when you have it you may spend it). Still this is a huge percentage, even if it's 10% that's enough to do some damage
Re: 32% of U.S. households missed their July housing payments
#6The report for the underlying survey (which the CNBC article was kind enough to link) is very readable and contains additional useful information: https://www.apartmentlist.com/research/july-housing-payments
The spin in the CNBC article about late payment seems misleading, or at least, not supported by the survey:
CNBC: "Almost 90% of households had paid some or all of their rent or mortgage payment by the end of June. But with late fees tacked on, those households may be more likely to miss their next housing bill, perpetuating a vicious cycle."
Apartment List: "It continues to be the case that the majority of payments missed in the first week of the month are made up with late payments. 89 percent of respondents reported that they had paid their June bill in full as of the first week of July. This is consistent with the end-of-month payment rate for prior months."
Highlighting the differences, CNBC says respondents "paid some or all", while the actual survey claims that 89% of the overdue bills were paid "in full". CNBC points out that theoretically the added fees may create a vicious cycle, while Apartment List says that there is as yet no evidence of this.
One useful datapoint that I didn't see mentioned in either article is the "base rate" for other years. What are the typical numbers for July in the years when there isn't a global pandemic? Does anyone have a source for this?
Re: 32% of U.S. households missed their July housing payments
#7Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
So the payments get deferred, but if families aren't earning any money (e.g. lost job or furloughed) for these missed months, how will they catch back up? Where does the extra money come from?
At least with a mortgage, couldn't it be reasonable to extend the entire payment schedule by 1/2/3 months?
Re: 32% of U.S. households missed their July housing payments
#8Earlier quoted context omitted.
So the payments get deferred, but if families aren't earning any money (e.g. lost job or furloughed) for these missed months, how will they catch back up? Where does the extra money come from?
At least with a mortgage, couldn't it be reasonable to extend the entire payment schedule by 1/2/3 months?
Yeah, that's my thinking as well. Maybe congress will pass a nationwide extension on home mortgages for some determined duration of the pandemic? Rent is less clear. Maybe something similar for the landlords and in return there is a moratorium on evictions?
Re: 32% of U.S. households missed their July housing payments
#9Earlier quoted context omitted.
So the payments get deferred, but if families aren't earning any money (e.g. lost job or furloughed) for these missed months, how will they catch back up? Where does the extra money come from?
At least with a mortgage, couldn't it be reasonable to extend the entire payment schedule by 1/2/3 months?
Agreed. This would make the most sense surely.
Re: 32% of U.S. households missed their July housing payments
#10Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
It appears alarming because it's spun that way. Look at the actual survey the article references and you'll see 89% of missed first-week payments in June were paid in full with late payments. Basically, some people were late on their rent/mortgage payment last month, still ended up paying it in full, and CNBC wants to convince you that this means the payments missed in the first week of July won't be made at all; July isn't even halfway over and they want you to assume the worst. The article is misleading at best.