The share of mortgages in forbearance in the United States dipped slightly last week, though 3.6 million homeowners continue to have their payments paused, according to the latest survey released by the Mortgage Bankers Association.
MBA reports that 7.16 percent of mortgages were in forbearance as of August 30, down from 7.20 percent the week before. The survey also found:
- The share of Ginnie Mae loans in forbearance increased from 9.58 percent to 9.62 percent.
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 4.88 percent to 4.80 percent.
- The share of independent mortgage bank loans in forbearance held steady at 7.41 percent.
- Bank loans in forbearance dropped from 7.49 percent to 7.40 percent.
“The labor market continued to heal in August, with strong job growth and a large decline in the unemployment rate,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “However, the economy still faces an uphill climb and remains far away from full employment. High unemployment, and jobless claims consistently around 1 million a week, continue to cause financial strain for some borrowers – and especially for those who work in industries hardest hit by the pandemic.”