As COVID-19 continues to affect millions of homeowners across the country, the impact is being felt heavily in the state of California, as The East Bay Times reports that late mortgage payments in the state tripled in May.
"In May, 6.85% of California mortgages were estimated to be 'non-current,' that’s a troubled-loan category that includes mortgages with missed payments plus those formally in the foreclosure process. The rate’s 228% jump in six months from 2.1% was topped by only two states: Alaska—up 256%—and Nevada—up 236%," according to The East Bay Times.
Yesterday, Black Knight reported that 4.3 million U.S. homeowners were past due on their mortgages in May, more than double the amount from March 2020.
Despite numerous stimulus efforts in the state, California borrowers were still unable to make their mortgage payments. The report revealed that California's economy has been "battered," due to business limitations that were set back in March as the pandemic began to ramp up. Stay-at-home orders played a huge role in the California unemployment rate, which hit 16.3% in May 2020, according to the report.
"Yes, foreclosure numbers show record lows. But that’s because state and federal authorities have clamped down on the foreclosure process," according to the report. "But that hasn’t halted a growing share of owners being forced to skip payments and/or seek loan forbearance agreements with lenders."
This news comes as the state announced that on Sunday, it recorded its highest-ever seven-day average of new coronavirus cases since the pandemic began.
Click here to learn more about California's rising number of late mortgage payments.
Redfin says sellers are cutting their asking prices in the two southern states.
Two states in particular are experiencing a ballooning supply of homes for sale this spring, paired with modest price cuts to entice buyers.
A new report from Redfin indicates that housing supply is surging in Florida and Texas, and sellers are cutting their asking prices...
National Association of Realtors reports gains in Northeast, South and West, with a slight drop in the Midwest
Homes under contract are rising at a cautiously hopeful pace this spring.
The National Association of Realtors’ Pending home Sales Index climbed 3.4% in March, increasing to 78.2. Year-over-year, pending transactions were up 0.1%.
“March's Pending Home Sales Index – at...