Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.
This data is as of August 25th.
After holding flat last week, the total number of mortgages in active forbearance improved slightly. Forbearances ticked down by just 1,000 over the past week, making the second consecutive week of basically zero net improvement.
This is not unexpected, as improvement has slowed toward the end of each of the past several months. It has generally followed a stair-step progression with the most improvement seen at the beginning of the month and slowing as we move toward the end.
According to Black Knight’s McDash Flash Forbearance Tracker, as of August 25, 3.9 million homeowners remain in active forbearance, representing 7.4% of all active mortgages. This is unchanged from last week (or the week prior). Together, they represent $828 billion in unpaid principal. Of these, 72% have had their terms extended.
As we’ve discussed previously, there are a number of factors that continue to represent significant uncertainty as we move forward, including the ongoing COVID-19 pandemic and the expiration of expanded unemployment benefits last month.
CR Note: I’m still expecting another disaster relief package soon, but we might see an increase in forbearance activity in the coming weeks as we wait for additional relief.