Monday afternoon marks the release of the latest Forbearance and Call Volume Survey from the Mortgage Bankers Association (MBA), and with a steady decline in forbearance volume, will the trend continue?
There are currently an estimated 2.1 million homeowners in forbearance plans, a number that has dropped weekly for 11 consecutive weeks. Last week, 4.22% of servicers' portfolio volume represented loans in forbearance, down 14 basis points from the previous week’s share of 4.36%.
"The opening of the economy, as the successful vaccination effort continues, should lead to further reductions in the forbearance share,” said Mike Fratantoni, MBA's SVP and Chief Economist. “However, many homeowners continue to struggle. Borrowers who are reaching the end of their forbearance term should reach out to their servicer to review their options."
With more and more Americans returning to the workforce and regaining their financial footing after the pandemic, will that number of homeowners in forbearance plans continue to plummet?
This week, the U.S. Department of Labor reported the number of initial unemployment claims was initial claims was 444,000, a decline of 34,000 from the previous week's revised level, marking the lowest level for initial claims since March 14, 2020 when unemployment claims stood at 256,000.
That number, combined with the MBA’s total mortgage application volume rising 1.2% week-over-week, are two key spots that could signal economic strength in the near term.
Here's what else is happening in The Week Ahead:
- Senate Banking Committee Remote Hearing: The Semiannual Testimony on the Federal Reserve’s Supervision and Regulation of the Financial System (Tuesday)
- House Subcommittee on Oversight and Investigations Virtual Hearing-Consumer Credit Reporting: Assessing Accuracy and Compliance (Wednesday)
- Senate Banking Committee Remote Hearing: Annual Oversight of Wall Street Firms (Wednesday)
- MBA Weekly Applications Survey (Wednesday)
- Realtor.com Weekly Housing Market Recap (Wednesday)
- Terner Center for Housing Innovation at the University of California at Berkeley Webinar "Reducing the Complexity of Funding Affordable Housing: What Works?" (Thursday)
- House Financial Services Committee Virtual Hearing-Holding Megabanks Accountable: An Update on Banking Practices, Programs and Policies (Thursday)
- Freddie Mac Primary Mortgage Market Survey (Thursday)
- Senate Housing, Transportation, and Community Development Remote Hearing-Housing for Native Americans: Review of Federal Programs, Barriers, and Opportunities (Thursday)
- U.S. Department of Labor's Unemployment Insurance Weekly Claims Report (Thursday)
- Black Knight weekly forbearance data (Friday)