As nearly 40 million Americans are out of work, how is the mortgage market doing during the coronavirus pandemic?
Well, according to the Mortgage Bankers Association (MBA), the industry is not facing a crisis. Still, the data suggests it is important to keep one eye on the sector.
The MBA reports that 4.1 million homeowners are in forbearance plans, meaning borrowers can skip or reduce their payments temporarily. Overall, 8.16 percent of all U.S. mortgages are in forbearance as of May 10,, up from 7.91 percent as of May 3.
“There has been a pronounced flattening in loans put into forbearance — despite April’s uniformly negative economic data, remarkably high unemployment, and it now being past May payment due dates,” Mike Fratantoni, chief economist for the Mortgage Bankers Association, said in the report.
Forbearance requests have dipped from 0.52 percent to 0.32 percent.
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