Amid a challenging housing market, the number of mortgage loans in forbearance increased slightly in June to 0.23%. According to the Mortgage Bankers Association’s Loan Monitoring Survey, 115,000 homeowners are in forbearance plans, and since 2020, mortgage servicers have provided forbearance to approximately 8.2 million borrowers. Marina Walsh, MBA’s vice president of industry analysis, says this is the first time the number of loans in forbearance has increased since October 2022.
Added Walsh, “There were several factors that caused the forbearance rate to rise in June, including the uptick of severe weather events that hit multiple regions of the country as well as early signs of consumer distress that could potentially impact borrowers’ ability to pay their mortgages. Additionally, June’s month-end fell on a Sunday, and the weekend timing typically leads to higher mortgage defaults in any given month.”
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