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

Can I still re-finance if I took advantage of mortgage forbearance? The answer is no, not until you have caught up your payments and you cannot have any late payments within a 12-month period. If you have any questions regarding forbearance and re-financing, please contact us at 949-415-4105 or jrod@ifminc.com.

“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. But will it hold? 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.”

Read the full HW article here.