CMHC WARNS OF COMING MORTGAGE DEFAULTS
A significant number of homebuyers think housing risk disappeared, because defaults haven’t jumped. Defaults can’t rise right now, because lenders stopped collecting payments from almost a fifth of mortgages. The CMHC reminded lenders they “always anticipated a delayed impact: weakening in late 2020 and 2021 once government income supports unwind, bankruptcies increase and unemployment starts to bite.”“borrowing creates a very significant economic drag on our outlook.” Since debt is future income used today, expansion of household debt will slow future economic activity
No comments:
Post a Comment
Your comment will appear after moderation before publishing,
Thank you for your comments.Any comment that could be considered slanderous or includes unacceptable language will be removed.
Thank you for participating and making your opinions known.
Note: only a member of this blog may post a comment.