SFA Research Corner: Household Balance Sheets and Labor Markets Robust Even as Relief Programs Roll Off

On August 26, the Supreme Court upheld a ruling to vacate the CDC’s eviction moratorium. This pandemic assistance program, which has primarily benefited lower-income households, has helped households stay current on their debt obligations despite elevated levels of unemployment. As the labor market and household balance sheets strengthen, usage of these programs has declined. Unemployment, expected to be re-established as the leading indicator of credit performance, will be the metric to watch as households begin to recover their economic footing.