Sep 14, 2020
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USA predicts financial crisis due to overkill of mortgage loans

The United States is facing a financial collapse due to the number of mortgage loans that Americans have gained at $ 1.1 trillion. This indicator for the II quarter of this year became the highest for the entire period of observations.

Such indicators were not recorded even before the mortgage collapse of 2007, which eventually turned into a global crisis. Experts attribute the current situation to the fact that during the period of self-isolation, Americans began to earn more than before the pandemic, due to unemployment benefits and an additional $ 600 per week. write "Notifications".

At this time, it was forbidden to evict people from rented apartments, banks provided customers with deferrals for loans, the same measures were taken in relation to mortgage holders. And the residents of the country who saw the opportunity began to buy houses and apartments.

A new mortgage collapse could be fatal for the US, analysts predict. This year, the US budget deficit, taking into account all costs to support business and the population in a pandemic, will reach 17%, while last year it was 3%. The additional costs of bailing out the mortgage system will be another overwhelming obligation for the US budget.

It is not yet clear if this will lead to the collapse of the entire system, as it did in 2007. The fact is that the share of mortgage loans in the United States, despite their growth, is only 1.5% of the total portfolio. So the market has a 5-7 year supply before prices collapse and a wave of non-payments begins.

Earlier reported that experts explain the impressive growth of mortgage lending in Russia by deferred demand and the state program of preferential mortgages. At the same time, housing prices went up significantly.

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