The good news on forbearance just keeps coming! Today the MBA reported that forbearance volume fell again for the 18th straight week. 18 weeks is a long time — longer than theMacarena song was at thetop of the Billboard charts, as long as two seasons ofTidying up with Maria Kondo (there was alas, only one) and it's enough time to read the major works of Dostoevsky at UC Berkeley.
The share of loans in forbearance is now at 3.87% and there are less than 2 million homeowners with loans in forbearance. The MBA expects even more exits as numbers come in for July. "Strong job growth in June should provide a springboard for further improvements in the numbers over the next month," said MBA Chief Economist Mike Fratantoni.
For Lead Analyst Logan Mohtashami, job growth is key to the strong recovery he is predicting for the rest of this year. Here's an excerpt from hislatest article, published yesterday:
"The most recent jobs report showed 850,000 jobs were created last month. I still believe that we will recover all the jobs lost due to COVID-19 by September 2022 or earlier. Currently, we are 6.8 million jobs away from getting that goal and have 9.3 million job openings. Higher paying jobs, the kind held by homeowners, are returning faster than those with lower-wage jobs, and the bulk of the jobs lost were tied to those with a renter financial profile. A strong employment picture means fewer distressed homeowners who will be forced to sell."
Forbearance exits are good news for homeowners, the housing market and the servicers working with homeowners to get the best outcomes. Great way to start out this week!
For the 18th straight week, servicers' forbearance portfolio volume fell. It dropped four basis points to 3.87% last week, according to a survey from the Mortgage Bankers Association.
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