The share of mortgages in COVID-19-related forbearance plans decreased slightly last week to 8.47% of all loans, down from 8.48% the previous week, according to the Mortgage Bankers Association (MBA).
As of the week ended June 21, about 4.2 million U.S. homeowners were in forbearance plans.
By investor type, Ginnie Mae loans continued to have the highest forbearance rate, at 11.83%. That’s basically flat compared with the previous week.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior week – from 6.31% to 6.26%.
The share of other loans (e.g., portfolio and PLS loans) in forbearance increased relative to the prior week – from 9.99% to 10.07%.
“The overall share of loans in forbearance declined for the second week in a row, led by the third straight drop in GSE loans,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Many borrowers initially received a three-month forbearance term, and as of June 21, 17 percent of loans in forbearance have now been extended, with the largest share of those being Ginnie Mae loans.
“The level of forbearance requests remains quite low as of mid-June,” Fratantoni says. “The rebound in the housing market is likely one of the factors that is providing confidence to both potential home buyers and existing homeowners during these troubled times.”