How to simplify the appraisal process for everyone in today’s hot market

The housing market isn't slowing down anytime soon, and appraisers need to make sure they have the right tools to manage the high demand.

Who’s afraid of the PSPA?

Stakeholders are divided over whether, in light of proposed changes to its capital rule, the FHFA should retool its agreement with the U.S. Treasury and remove policies some say never belonged there in the first place.

Back to the Future of Mortgage Lending

This webinar will discuss what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on jobs data and the bond market

In this episode of HousingWire Daily, Logan Mohtashami discusses what the jobs data, changes in the bond market, and the Omicron variant could mean for housing.

CoronavirusMortgage

Forbearance rate declines after June’s economic improvements, but will it hold?

With COVID-19 infections in the U.S. surging above 3 million, jobs recovery could be stymied

The U.S. mortgage forbearance rate fell to 8.39% in the last week of June, down from 8.47% a week earlier, as businesses reopened and the jobs market improved, according to a report on Tuesday from the Mortgage Bankers Association.

The drop in forbearances came as the nation’s unemployment rate fell to 11.1% in June from May’s 13.3%, based on job data collected mid-month when the nation was reopening businesses.

“We learned last week that the job market improved more than expected in June,” said Mike Fratantoni, MBA’s chief economist. “With that as background, it is not surprising that the forbearance numbers continue to improve as more people go back to their jobs.”

The share of Fannie Mae and Freddie Mac mortgages in forbearance dropped for the fourth week in a row to 6.17%, a 9-basis-point improvement, the MBA report said.

Ginnie Mae loans in forbearance decreased 11 basis points to 11.72%. The forbearance share for portfolio loans and private-label securities, including jumbo mortgages, increased by 1 basis point to 10.08%.

Since that mid-June labor-market measurement showing people going back to work, COVID-19 infections have set new daily records and surpassed 3 million in the U.S., in total.

In the past two weeks, states representing about 60% of the U.S. population have responded to the acceleration of the pandemic by pausing or reversing reopening plans, according to a report from Goldman Sachs.

The resurgence in the pandemic has “already been much worse than we anticipated, and further restrictions will likely be required in some states to bring the virus under control,” the economists led by Goldman Sachs Chief Economist Jan Hatzius said in the report issued on Saturday.

Another worry is: The beefed-up unemployment provision in the CARES Act, which adds $600 a week to state payouts in an effort to fully replace salaries, is set to expire on July 31.

“If you’re a middle-income household with a job loss, that $600 a week could mean the ability to pay your mortgage and if it goes away it could put pressure on the housing market in terms of either mortgages or rents,” said Joel Naroff, president of Naroff Economics.

In May, the House of Representatives passed the Heroes Act, which extends the enhanced jobless benefits through January and provides almost $1 trillion in relief to state and local governments overwhelmed with the costs of battling COVID-19. Last week, the Senate adjourned for two weeks without addressing the issue.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

Pending home sales shock 2021 housing crash bears

Pending home sales beat estimates and we can now say the 2021 housing crash bears are even worse forecasters than the 2020 housing crash bears.

Nov 29, 2021 By

Latest Articles

How did the pandemic change the state of the appraisal market?

Brian Zitin, CEO at Reggora, a HousingWire Tech100 mortgage winner, shares how technology is impacting the future of the appraisal process and what’s to come for appraisal fulfillment in 2022. 

Dec 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please