After a slight decline last week (-12,000) forbearances have increased once again, but there is some good news in terms of plan starts.
Black Knight Inc.’s snapshot of daily tracking data showed the number of mortgages in active forbearance saw a 37,000 increase from last Tuesday, mirroring what’s become a common trend of mid-month upticks that we’ve observed so far in 2020.
As a reminder, since the recovery started, we’ve regularly seen the strongest declines early in the month, as expiring forbearance plans are removed.
The primary driver behind this week’s rise – as is the case with the aforementioned trend of mid-month upticks in general – came from a pullback in such plan exits, which were down considerably – but expectedly – week over week.
With more than 550,000 plans still set to expire at the end of December, we could see more positive news in terms of plan removals in the first week of January.
Overall, the number of active forbearance plans is now up 31,000 from the same time last month, and – as of December 15 – 5.3% of all mortgages (2.79 million) are in forbearance.