Promising sign of recovery in a pandemic-devastated economy has stopped: Fewer borrowers are resuming mortgage payments.
The share of homeowners who defer mortgage payments has been steadily declining from June to November, indicating that people are returning to work and the economy is beginning to recover. But the decline has largely leveled off since November, when the current wave of coronavirus cases spread to communities across the country.
In the last two months, this group of homeowners has leveled off by about 5.5 percent, according to the Mortgage Bankers Association. Although it peaked at 8.55% in June, some economists are concerned about the slowing tolerance rate – and are worried that it may even start to rise as the economy leaves jobs.
Other data show a slowdown in the US economy this winter and greater pressure on household finances. Employers cut jobs last month for the first time since the spring. The number of jobs created has decreased and unemployment insurance claims remain high. Retail sales have declined for three consecutive months.
“With declining recovery and more claims for unemployment, we̵