Corporate bankruptcies have spiked this year—a trend that seems poised to continue as rising costs eat away at consumer spending. According to S&P Global Market Intelligence, more than 450 major businesses have gone belly up so far in 2023.
That’s higher than the total number of businesses that failed in each of the previous two years. It’s also the highest single-year for bankruptcy filings since 2010.
The vast majority of us households have mortgage rates at historical lows, rent is more expensive than many mortgages in many regions. Fewer people have adjustable rates, I don’t think we’ll see a significant spike in defaults in this environment.
In Australia a maybe portion of the country my self included have locked interest rates that expire this year. In Australia we expect to see delinquencies on mortgages come the start of 2024 when households are hit with new rates twice as high as they have been.
Oof godspeed, I think canada has a similar problem
That’s fair. I had only been considering the new purchases at those rates - I suppose anyone locking in a refinance at 2.5% would be spending far less than they were and similarly be less burdened.