When Joe Biden became president, he inherited a nation rife with problems stemming from the Covid-19 pandemic. Among his priorities: Ensuring the 2.1 million homeowners seriously behind on their mortgage payments don’t lose their homes and spur a full-on housing crisis.
The Biden administration has extended homeowner protections put in place in the immediate wake of the pandemic and has proposed extending them further. Once the policies end, there will be an uptick in foreclosures, but just how much depends on the duration of both the crisis and protections.
“There’s a morphine drip into the body economic that is so powerful that you have no idea what the underlying condition of the patient is,” William R. Emmons, an economist at the Federal Reserve of St. Louis, told Barron’s. “We have no idea what the true state of the housing market is—or would be, hypothetically—because we’ve hit it with such a huge dose of morphine.”
https://www.barrons.com/articles/there-probably-wont-be-a-post-covid-wave-of-foreclosures-heres-why-51614717019