Delinquencies Improve; Residents OK Low-Income Housing

A roundup of news and information from around the web about real estate, personal finance, and the economy.

Serious Delinquencies Improved in September for the First Time Since the Start of the Pandemic

Black Knight reports the following “first look” at September 2020 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

Data from the report reflect:

The number of seriously delinquent mortgages (90+ days) fell by 43,000 in September, marking the first such improvement in serious delinquencies since the start of the pandemic
More than 2.3 million homeowners—five times the number entering 2020—remain 90 or more days past due, but not in foreclosure
The national delinquency rate fell in September to 6.66%, down from 6.88% the month prior
Early-stage delinquencies continue to show strong improvement, with rolls from current to 30-days delinquent, as well as the number of borrowers less than 90 days delinquent, having returned to pre-pandemic levels
Both foreclosure starts and foreclosure sales continue to remain muted given the widespread foreclosure moratoriums still in place
After a slight pull back in August, prepayment activity jumped above 3% in September for the first time in more than 16 years, fueled by record low rates and an elongated home buying season

Learn more here.

Most Suburban Residents Wouldn’t Mind a Low-Income Housing Development in Their Neighborhood

Thirty-eight percent of homebuyers and sellers don’t want to see low-income housing in their neighborhood, according to a new report from Redfin. That’s roughly the same share as in November 2019, when 39% of respondents said the same thing. The report is based on findings from an August Redfin survey of more than 1,400 U.S. residents who plan to buy or sell a home in the next 12 months.

More people oppose low-income housing—which the survey question defines as “affordable housing in the form of mid-grade townhomes, apartments or similar”—in their neighborhood than any other type of building. Shopping centers, which 34% of all respondents oppose, and office buildings (32%) come next.

President Trump suggested that people who live in the suburbs are opposed to low-income housing when his administration rescinded a 2015 federal rule called Affirmatively Furthering Fair Housing, meant to combat discrimination by requiring local governments to proactively ensure fair housing to receive federal housing funding. Joe Biden has pledged to reinstate the rule if he is elected. In addition to reinstating the rule, Biden’s $640 billion housing plan would combat discriminatory housing practices and support building more low-income housing and single-family homes in urban, suburban and rural areas.

Read the rest of the report here.

More than One Third Of Americans Would Consider Relocating if their Candidate Doesn’t Win the Election

Ahead of the upcoming election, a new survey from Realtor.com found that while most Americans want to live where their views are in the majority, younger Americans (18 to 34-year-olds) have an even stronger desire for a like-minded political community and are more likely to move based on their political preferences. According to the data, 61% of younger respondents feel strongly or somewhat strongly about living in a community with similar beliefs and 48% would consider moving to make this happen.

During the second half of September, Realtor.com and YouGov surveyed 2,000 Americans about their political views, whether those views impact where they want to live and their likelihood of moving based on the outcome of the election.

“Younger Americans tend to be more connected to political causes they believe in, and typically have more flexibility when it comes to moving around and trying out different places to live. Our data shows that being surrounded by people with similar political beliefs is important to this group and will likely play a part in where they eventually decide to settle down,” said George Ratiu, senior economist, Realtor.com. “One reason older respondents may be less inclined to relocate is because they live in a place that they feel best meets their needs and feel connected to their community.”

Election results could lead to more people moving

While we’ve already seen that some voters are moving to key swing states, this survey indicated that the trend could heighten post-election. Specifically:

55% of respondents think it’s important or extremely important to live in a community that shares your political beliefs.
20% of respondents have considered moving to a place where their politics align with their community and 21% are waiting for the outcome of the election.
12% of respondents said they would definitely move if their candidate doesn’t win the election and 23% said they would consider it.

Find out more here.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.