Millions missed September housing payments

Persistent layoffs are slowing momentum in the labor market, which bodes poorly for the broader U.S. recovery as millions of out-of-work Americans delay their mortgage and rent payments.

More than 6 million households failed to make their rent or mortgage payments in September, according to the Mortgage Bankers Association’s Research Institute for Housing America, a sign that the economic fallout from the coronavirus pandemic is weighing on jobless Americans as Congress stalls on relief measures.

In the third quarter, the percent of homeowners and renters behind on their payments fell slightly from the prior quarter.

Still, the overall amount remains high, experts caution.

Over the summer, rent and mortgage payment collections improved as states resumed business reopenings and more Americans returned to work. High unemployment, however, continues to place hardships on millions of U.S. households.

The unemployment rate fell to 7.9% from 8.4% in August, the Labor Department said earlier this month. Overall, the economy is still recouping jobs in outsize fashion after shedding a record 22.1 million in early spring, but the recovery is slowing.

In September, 8.5% of renters, or 2.82 million households, missed, delayed or made a reduced payment while 7.1%, or 3.37 million homeowners, missed their mortgage payment.

Renters receiving unemployment benefits rose from 3% in early April to 7% by the end of September.

Mortgagers getting jobless aid remained unchanged at 3% during that time span.