16 Oct Further Behind on Payments
Good afternoon everyone,
Black Knight reported that active loans in forbearance are up 19k from the prior report putting 5.6% of all US loans in forbearance. However, this slight increase comes after last weeks news of an 18% (649k) decrease of loans in forbearance – the largest decrease since the pandemic started.
The Mortgage Banker Association released data regarding mortgage, rent and student loan payments for September. The MBA found that 6 million people missed their rent or mortgage payments while over 26 million missed their student loan payment. An economics professor at Syracuse University highlighted in the report that, “With the current eviction moratorium expiring in January, the situation could be even more challenging for renters. Many renter households across the country could find themselves with no place to live and no means to repay missed payments”.
Mortgage backed securities managed to break through the double ceiling of their 25 and 50 day moving averages and still have room on the upside. We hold a locking bias unless you are in a position to lock and can watch the market closely.
Have a great weekend!