In the previous April and May, the proportion of Americans defaulting on their home loans was 24% and 31%, respectively. In spite of a slight decline in June, it is still close to may, indicating that the situation of the US real estate market has not been substantially improved.
However, it is worth noting that the survey result is the default rate of housing loans at the beginning of the month. As repayment can be made in the middle of the month, the default rate will generally fall at the end of the month. By the end of May, the proportion of Americans defaulting on their mortgages had fallen from 31% to 11%.
However, 83% of Americans who paid their mortgages on time at the beginning of May did so in June; only 30% of those who made up their mortgages at the end of May paid their June loans in full.
Given that one months delay is a powerful indicator of how things will look in the coming months, this suggests that the number of Americans who failed to pay their mortgages in time at the beginning of July could be as bad as in June.
Unable to pay the mortgage and rent, Americans began to worry about receiving evictions. The survey found that more than a third of renters were at least a little worried that they would be evicted in the next six months, while the proportion of those who only asked the renters who had not paid the rent in June rose to 65%.
Source: Wang Xiaowu, editor in charge of Wall Street information_ NF