Black Knight reported on their website that “that the number of loans in forbearance fell by 17K this week, dropping the national forbearance rate to 7.7%. There are now 4.1M loans that remain in active forbearance as of July 28th. While noticeable declines were seen among GSE (-30K) loans as well as loans held in portfolio and private labeled securities (-5K), FHA/VA forbearances rose for the third consecutive week (+18K) reaching their highest level since early July.”
Forbearance is when your mortgage servicer, that’s the company that sends your mortgage statement and manages your loan, or lender allows you to pause or reduce your payments for a limited period of time. Forbearance does not erase what you owe.
This news came as Black Knight’s Collateral Analytics reported that the available inventory of single-family homes for sale across the U.S. is at a historically low level.
It is expected that the effects of the COVID-19 pandemic will begin to have an impact on the market as more states open up their economies and people that were laid off begin finding new positions.