getty
When the coronavirus pandemic hit the United States, mortgage rates plummeted as the Federal Reserve cut interest rates to near zero. Those rock-bottom lending rates helped support the housing market during the worst of the economic downturn in the spring and saw tremendous growth in July.
While it may be a hot time to buy for some, Americans at the lower end of the income spectrum are struggling. Here are four numbers that shed light on the bifurcated housing market.
24.7%
That’s how much existing home sales – a measure of activities for the sale of former homes – increased from June to July, according to the National Association of Realtors. It is the highest rate since December 2006.
2.99%
That’s the current rate on a 30-year fixed mortgage, according to data released yesterday by federal mortgage investor Freddie Mac, down 3.55% a year ago. The 30-year rate hit a low of 2.88% two weeks ago and has since returned.
3.3%
That’s how many mortgage applications have fallen since last week, according to the Association of Mortgage Bankers, in part because of somewhat higher rates.
376,000
That is how many more people were at least 90 days behind on their mortgage in July compared to June – an increase of 20% – according to the Washington Post. While mortgage defaults are generally down, serious delinquencies have reached a 10-year high, indicating that economic stress from other areas in the housing market is picking up.
