Covid-19 has been a disaster TEMPORARILY for the US economy, but the US economy is resilient. According to the Atlanta Fed’s GDPNow real time GDP is now at 3.514%, higher than GDP before the Covid outbreak.
While the US mortgage market saw a rapid increase in mortgage delinquencies thanks to Covid, it did not materialize into a foreclosure wave as did during the financial crisis.
The reason why? Forbearance. And loans in forbearance has been gradually declining.
So if states and cities discontinue their Covid lockdowns, we should see a normalization in mortgage delinquencies.