Why Can't Americans Pay Their Mortgage? 🏠

What We’re Showing

This graphic shows the financial reasons that Americans can’t pay for their mortgage. Figures represent reasons for new 90+ day delinquencies on single family homes, based on data from the U.S. Department of Housing and Urban Development.

Key Takeaways

• The share of Americans citing that a “reduction of income” was the primary reason for a seriously delinquent loan has returned to pre-pandemic levels 
• In Q4 2020, nearly 84% of Americans cited “national emergency” as the main reason for delinquency, and over the next three years it remained the top reason overall
• As of May 2024, 3.5% of single-family residential mortgages were seriously delinquent
• A separate study shows that cash-flow problems were responsible for 70% of underwater mortgage defaults between 2008 and 2015, while strictly negative equity caused just 6% of these defaults