US HOME MORTGAGE DELINQUENCIES HIT HIGHEST LEVEL IN 9 YEARS

The number of US home mortgage delinquencies has surged to the highest level in nine years as the coronavirus pandemic continues to hit family finances, Carmen Reinicke wrote for Market Insider on June 22, 2020.

Total borrowers more than 30 days late surged to 4.3 million in May after a record jump to 3.4 million in April, according to a Monday report from Black Knight. In addition, more than 8% of all US mortgages were either past due or in foreclosure, the report showed.

The report also included homeowners that missed payments even though they had forbearance agreements in place, which allow six months of deferral without penalty. Many borrowers who qualified for forbearance plans initially made payments, although the percentage has declined since the start of the pandemic - 15% of homeowners in forbearance plans made payments as of June 15, down from 28% in May and 46% in April.

Even though the jump in delinquencies was less than the record spike in April, there's still much uncertainty going forward due to the coronavirus pandemic. While all US states are moving forward with reopening efforts, a spike in new COVID-19 cases in some areas has led to fears that the pandemic could further decimate the economy.