The Mortgage Bankers Association released forbearance rate information Monday (Feb 8th 2021) – and it shows that the U.S. rate fell 3 basis points to 5.35% last week.
Although the forbearance rate isn’t falling as quickly as we’d like it to, it’s still progress. Fannie Mae and Freddie Mac claimed the lowest forbearance rate at 3.07%. Ginnie Mae also saw declines – 5 points lower to 7.46%.
Does this mean the housing market should be expecting the forbearance rate to keep falling? According to Mike Fratantoni, MBA’s Chief Economist, “There are homeowners who are likely to still be in forbearance and need additional support until the job market recovers to a great extent.”
For almost four months now, forbearance portfolio volume has shifted around 5% and 6% which is the longest percentage range held since the survey’s beginnings in May.
Logan Mohtashami, HousingWire’s lead analyst, explains that this isn’t something to worry over. “This isn’t 2008 all over again. That recovery was slow, but today our demographics are better, and our household balance sheets are healthier. The fiscal and monetary assistance now is hugely improved from what we saw after 2008. We have everything we need to get America back to February 2020 job levels; we just need time.”