Home foreclosures on the rise
In the first six months of this year, the U-S saw a significant jump in foreclosure filings. It coincides with concerns about the pressure inflation is putting on homeowners. The uptick follows the expiration of pandemic moratoriums and forbearance programs, but analysts say spikes in consumer costs aren’t helping. Joe Mahon(Man) of the Federal Reserve Bank of Minneapolis says it affects borrowers in different ways:
“It causes people to cut back on the more discretionary parts of their budget. And if you’re low income, you don’t necessarily have a lot of discretionary spending, so there’s not necessarily a lot of room to cut.”
Mahon says even though wages have been rising sharply, they haven’t kept up with inflation, hurting a person’s chances to get caught up on budget concerns, such as overdue payments.