Nationally, mortgage performance is stellar, but a few states are bucking the trend
Market Watch - Andrea Riqier - 25 Oct 2016
Since oil prices started to slide in 2014, the impacts on the U.S. economy have been noticeable. Thousands of jobs have been lost, plants have been shuttered and manufacturing stalled, and earnings have taken a hit.
Regionally, states whose economies are dependent on oil have had mixed records.Alaska, where severance taxes make up three-quarters of the state budget, is in trouble, while Texas, which has more diversified revenue streams, is more resilient.
But there’s one indicator that’s starting to flash a warning signal in nearly every energy state.
Over the past six months, mortgage trouble has jumped, in some cases by double-digits, according to data from Black Knight Financial Services. The percent of borrowers who are “noncurrent,” which means either delinquent or in foreclosure has spiked 20% in Alaska, and 19% in Wyoming.
That’s taking place even as the national noncurrent rate keeps falling. It’s down 1% during this period — but that decline was from very low levels to begin with.
Several of the oil states — Alaska, Wyoming, and both Dakotas — have had noncurrent rates below the national average for years, even now. But Black Knight points out that both Texas and Oklahoma have gone from below the national average to above it.