According to the Mortgage Banker Association’s latest National Delinquency Survey, more homeowners in Florida and across the country fell behind on their second quarter mortgage payments compared to the first.
In particular, Federal Housing Administration loans used to help low-income buyers and first-time buyers afford a home have peaked. Nationally, the delinquency rate for these loans has increased to about 15.7 percent – the highest percentage since the association began measuring in 1979.
In Florida, that number was even higher, at 16.8%. The state saw one of the largest increases between the first and second quarters in the country, along with New Jersey, New York and Hawaii, all states with a prevalence of jobs in tourism and hospitality. New Jersey had the highest delinquency rate on Federal Housing Administration loans, at just over 20%.
In comparison, the national default rate for conventional loans nationwide was 6.7%, according to the survey, which includes 39 million loans by about 100 lenders.
Delinquency rates include homeowners who have forbearance plans, which have become more available as lenders and the federal government have expanded options to delay payments for up to a year for those who have lost income due to the pandemic.
Mortgage delinquencies are directly linked to unemployment, and Marina Walsh, vice president of industry analysis for the Mortgage Bankers Association, noted that the job market has improved in recent months.
However, this good news is “tempered by many uncertainties, including the ambiguous status of the improved unemployment benefits and other stimulus measures, the recent increase in the number of new COVID-19 cases and the withdrawal of the reopening in certain states, ”she said in a statement. .