When it comes to the economy, most of us would likely agree that, while things are better, we “got a ways to go yet”. A recent article in the AJC examines the lingering impacts of the Great Recession, pointing out that despite improvements in employment (and even, finally, wages), many are still suffering.  One group hardest hit were those families and households unable to keep up with mortgage payments following the economic collapse.

The first chart below shows mortgage delinquency dropping significantly in the metro region from the highs of  early 2010.  At first glance, this is clearly a positive sign of economic recovery. But, taking a closer look at the issue, this decline in mortgage delinquency appears to closely track an overall decrease in home ownership (see second chart below). This ownership drop followed, logically, the national spike in foreclosures in 2009 –a clear result of the Great Recession (see third chart below).

With a declining share of households able and/or willing to get mortgage financing, the decrease in mortgage delinquency might not just be due to increasing incomes of homeowners. Less delinquency may be, in part, the result of banks enacting more stringent mortgage lending practices that act to create a pool of less risky loans.  Further, as discussed in a previous blog post, many homes in the metro region remain in a condition of negative equity, meaning that the estimated value of the property is less than the owner’s remaining mortgage payment. It’s nearly ten years out now from the housing crisis that led us into the Great Recession. Despite signs of full recovery in many economic indicators like the unemployment rate, many households in the metro region are still struggling–either (if current homeowners) to rebound from the significant loss of property wealth, or (if prospective homeowners) remaining hesitant or unable to own their own homes.

Source: Consumer Finance Protection Bureau, Mortgage Performance Trends

Source: US Census Bureau, American Community Survey, 2008 to 2016 (1-year estimates)

Source: ATTOM Data Solutions (Oct. 10, 2017) U.S. Foreclosure Activity Drops to More Than 11-Year Low in Q3 2017