Following last week’s largest weekly decline in COVID-19-related forbearances since the pandemic began, the market saw a slight uptick of 19k loans in forbearance this week.
New data released today from Black Knight’s McDash Flash Forbearance Tracker shows that though volumes increased week-over-week, there is still reason to be optimistic about the state of U.S. mortgages in forbearance.
We are seeing the national forbearance rate hold steady at 5.6% week-over-week, with just under 3 million homeowners remaining in active forbearance. This number is down from a peak of 4.76 million in late May.
The upward trend in forbearances was seen across investor classes, with GSE forbearances rising by 3k and both FHA/VA and Portfolio/PLS forbearances increasing by 8k over last week. FHA/VA loans continue to represent the largest share of loans in forbearance, at 9.5%.
All in, there are currently 708k fewer loans in forbearance now than the same time last month, which is a 19% decline. Of the remaining 2,988,000 current forbearance cases, 78% have had their terms extended with their servicer.
As market conditions continue to fluctuate weekly, please check this blog regularly for updated data and insights.