Although there are some indicators that the US economy is beginning to show initial signs of a rebound, such as the easing of restrictions re-opening of non-essential businesses and services, many Americans are still struggling to meet the financial needs of their basic necessities.
According to a recent survey conducted by Apartment List, a total of 30% Americans were unable to meet their housing payment obligations for the month of June, with one third only making a partial payment, and the remainder making no payment at all. Housing payments have been predominantly delinquent among households that make under $25,000 annually (40%), those that rent (32%), adults under the age of 30 (40%), as well as those that live in urban areas (35%). Meanwhile, missed payment rates among mortgaged homeowners are as high as 29%.
Although many households across the US have missed their payments at the beginning of the month, some are playing catch-up at a later date throughout the month. The start of May saw missed payment rates as high as 31%, but by the end of the month the delinquency rates were down to only 11%. however, given the current trajectory of missing or delayed housing payments, it is not likely the coming months will show any sudden, significant improvement.
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Information for this briefing was found via Apartment List. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
