Shelter Six:  Good News for Borrowers Exiting Forbearance

Mortgage purchase volume was up for the 5th week in a row and, after being down 35%, is now at nearly the same level as a year ago.

Moving in the right direction, the National Association of Home Builders’ Housing Market Index rose 7 points in May.

Also moving in the right direction, mortgages in forbearance decreased for the 5th straight week and now represent 9% of all mortgages, according to Black Knight.

Thanks to the protection of the forbearance program, foreclosure starts plummeted in April to record lows (down 73% from March and 94% from April 2019).

Fannie Mae and Freddie Mac rolled out some good news last week that will help borrowers who have been in forbearance obtain a new mortgage more quickly.

Borrowers who have exited forbearance and made at least 3 straight mortgage payments on-time will be able to obtain a new mortgage (previous guidelines called for 12 payment having to be made).

Rate Update

According to Mortgage News Daily, the benchmark Conforming 30-year fixed-rate fell this past week to a new all-time low of 3.04% and is dangerously close to cracking the 3% barrier for the first time.

This Week

New Home Sales will be released on Tuesday, Durable Orders on Thursday, and the Core PCE Price Index on Friday.

May 25, 2020 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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