U.S. Mortgage Forbearance Rate Drops to Lowest Level Since Mid-April

According to the Mortgage Bankers Association (MBA), the U.S. forbearance rate in the last week of August (8/28) fell to the lowest level since mid-April. The MBA is reporting that dropped to 7.16% from 7.20% in the prior week. The forbearance rate for Fannie Mae and Freddie Mac loans dropped eight basis points to 4.8%, while the rate for Ginnie Mae loans that include loans backed by the Federal Housing Administration increased four basis points to 9.62%. In prepared remarks, Mike Fratantoni, MBA’s chief economist said, “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.”