COLLEGE STATION – The economy took a big step forward in 3Q2020 with GDP increasing 33 percent at an annualized rate. How did Texas homeowners fare last quarter?
The percentage of Texas mortgages in delinquency dropped slightly from 9.35 percent in the second quarter to 9.1 percent in the third. Current levels are high compared with recent years but still haven’t exceed the high watermark of 10 percent reached in 2009 following the aftermath of the Great Recession.
While delinquencies are high, foreclosure rates remain exceptionally low thanks in large part to the Federal Housing Finance Agency’s (FHFA) ongoing foreclosure moratorium. The foreclosure rate continued to linger below 1 percent of the entire Texas mortgage pool, according to data from the Mortgage Bankers Association.
Some exceptions do apply, such as private-label mortgages, which are not protected by moratorium restrictions.
The foreclosure moratorium is set to expire Dec. 31, 2020. So far, there has been no word as to whether the FHFA will extend the moratorium or let it expire this year. Meanwhile, the Treasury Department recently announced its intention to let a variety of emergency lending facilities under the Coronavirus Aid, Relief, and Economic Security (CARES) Act expire.
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