“We’ve been seeing default risk climb throughout the first half of 2021, driven primarily by increased economic and borrower risk for new purchase loans,” says Jonathan Glowacki, a principal at Milliman and author of the MMDI. “And while today’s housing market faintly echoes that of 2007, before the global financial crisis, we see a number of important key factors that differentiate this increase in default risk.”
For an in-depth look at the housing market during the global financial crisis compared to the market during the COVID-19 pandemic, go to: https://us.milliman.com/en/insight/housing-market-madness-an-in-depth-comparison-of-the-housing-markets.
The MMDI reflects a baseline forecast of future home prices. For more on the MMDI, go to www.milliman.com/mmdi/.
To access additional mortgage market thought leadership, go to https://www.milliman.com/en/products/milliman-m-pire.
Milliman is among the world’s largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit milliman.com.
SOURCE Milliman, Inc.