Forbearance curve begins to flatten

Forbearance curve begins to flatten

Forbearance curve begins to flatten
Homeowners in the U.S. have been able to skip two mortgage payments since forbearance programs were put in place in March by most lenders. After millions of homeowners quickly arranged payment deferments with their lenders, new data from the Mortgage Bankers Association shows that the rate of those entering forbearance appears to be slowing.

The number of mortgages in forbearance rose to 8.16 percent during the week ended May 10, according to the MBA - up from 7.91 percent in the previous week. This is the smallest weekly increase since the week ended March 16.

Currently, there are approximately 4.1 million homeowners currently have their mortgages deferred. After much pushback, lawmakers have been working to encourage lenders to modify mortgages to move deferred payments to the end of a loan rather than require payment in full for all missed payments at the end of the forbearance period.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.375 percent and 15-year rates are near 2.75 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.