Monetary Policy & Inflation | US
The Mortgage Bankers Association (MBA) Q2 delinquency spike likely overstates the extent of delinquencies and suggests that the administration debt forbearance policy is protecting households’ ability to spend.
A Spike In delinquencies?
Chart 1 NY Fed and MBA delinquency data usually track closely
The MBA Q2 spike in mortgage delinquency rate has received widespread media attention. Yet it is inconsistent with the New York Fed Q2 data on household debt showing a decline in delinquency (Chart 1). The difference in the two numbers likely reflects the following:
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