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Covid-19s financial toll as homeowners continue to defer mortgage payments

A promising sign of a return in the pandemic-ravaged economy has stalled: Fewer borrowers are resuming mortgages.

The proportion of homeowners who take out mortgages had fallen steadily from June to November, indicating that people were returning to work and that the economy was beginning to recover. But the decline is largely flat since November, when the current wave of coronavirus cases rose in communities across the country.

In the last two months, the group of homeowners has flattened to approx. 5.5% according to the Mortgage Bankers Association. Although this is down from a high of 8.55% in June, some economists are concerned about the stagnant tolerance – and are afraid that it may even start to climb when the economy throws jobs.

Other data indicates a declining U.S. economy this winter and greater pressure on household finances. Employers cut jobs last month for the first time since the spring. The number of job openings has fallen and unemployment insurance requirements continue to rise. The retail level has fallen for three consecutive months.

“With the declining recovery and more applications for unemployment benefits, we are likely to see increased demand for indulgence,”

; said Ralph McLaughlin, chief economist at Haus, a start-up home finance firm. “One of the safeguards that people have if they own a home is to apply for indulgence.”

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