Forbearance loans see major drop in July

Forbearance loans see major drop in July

Forbearance loans see major drop in July
For the millions of Americans who opted in to a mortgage forbearance agreement with their lender at the beginning of the pandemic, the time is drawing near for them to resume mortgage payments. According to Black Knight, the number of homeowners in forbearance plans nationwide dropped by 189,000 leaving just 1.86 million or 3.5 percent of all active mortgages in forbearance. This is the first time the total has dropped below two million since April 2020.

Those who began deferring their mortgages early on in the pandemic are now entering their fifteenth month of forbearance protection and many lenders are looking to wind down this program for borrowers.

Fortunately, according to the Mortgage Bankers Association 77 percent of homeowners have a plan in place to resume their monthly payments.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 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.