Forbearances climb for third consecutive week

Forbearances climb for third consecutive week

Forbearances climb for third consecutive week
The volume of homes in forbearance in the U.S. climbed for the third straight week, according to a new report from Black Knight. Active forbearances rose by 15,000 in the last week of the year, driven largely by a surge in FHA and VA loans falling within this category.

Estimates from Black Knight show that there are currently 2.83 million mortgages in a state of forbearance.

At the start of the coronavirus pandemic, most lenders in the U.S. offered homeowners the opportunity to stall their mortgage payments if they were impacted by the virus. Many of those forbearance programs are set to expire in the coming weeks, likely pushing many borrowers into a state of default if they don’t modify their loan terms.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.

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