Homes in forbearance see uptick as pandemic worsens

Compared to the early days of the coronavirus pandemic, the volume of home loans in forbearance have seen a tremendous recovery. But with many regions seeing renewed lockdowns as COVID-19 cases rise across the U.S., there have been some slight upticks recently. Black Knight reports that there were 27,000 new loans in forbearance plans during the period ended Nov. 23. This is the second consecutive week of modest increases.

There are currently 2.78 million homeowners with their mortgage in a forbearance plan with their lender. This represents 5.3 percent of all homeowners nationwide. But the number of homeowners resuming payments on their mortgages has improved by 207,000 over the last month, a 7 percent decline.

Most lenders in the U.S. offered borrowers the option to delay payments on their homes at the start of the pandemic. While some require catch up payments at the conclusion of the deferment period, other lenders will allow borrowers to modify their mortgages by moving the missed payments to the end of the loan term.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.

Do you have a question for Real Estate and Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance or reverse mortgage via aramco.biz, social media (#AramcoReport), or over the phone at (866) 381–8888 and your question could be featured in an upcoming ar ticle.