As economic uncertainty sweeps across the country, how worried are homeowners about making their mortgage payments? In the 2023 U.S. Mortgage Servicing Survey, digital mortgage-servicing platform Brace found out.
The overwhelming majority, 85%, said inflation makes them worry about their ability to pay their mortgages. Other market conditions worry them too, including interest rates (78%); medical and health expenses (73%); job security (64%), and natural disasters (59%).
Many respondents said they’re already feeling the squeeze from inflation. Nearly half (46%) of homeowners said the increased cost of living has already impacted their ability to pay their mortgages over the last three to six months.
New Demographic Insights
The survey also shows striking differences among demographic groups, particularly by age and race.
Younger homeowners are especially worried about their ability to pay their mortgage, a reversal from historical trends. The survey finds younger homeowners more likely to be handling solo mortgage payments as the only borrower. The majority (53%) of single-borrower mortgages were held by people under 45. Also, most minorities (54%) are single borrowers, compared to 43% of Caucasians.
Seeking Education
The survey found that Servicers have an excellent opportunity to invest in homeowner education, which delivers significant ROI (return on investment).
More than two-thirds (69%) of homeowners are interested in receiving educational information from their Servicer about strategies for managing their mortgage finances and home
equity. The same percentage said they would work with their Servicer to set financial goals Interest is higher among minorities, with more than three-quarters of respondents wanting these educational tools.
“Our survey sends a crucial message to mortgage servicers about what homeowners need,” says Eric Rachmel, CEO and founder of Brace. “They’re seeking financial guidance, strategies, and education. Being more connected and engaged with servicing overall helps them to know their options and how to act upon them. Last year we found that most homeowners prefer to start with digital support instead of phone, and this builds upon that.”
Read more in Brace’s column for Nasdaq.com, Amid Mortgage Worries, Two Crucial Steps to Protect Homeowners and Investors.
