Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Houses outside Phoenix, Ariz. Photo: Wally Skalij/Los Angeles Times via Getty Images
The number of mortgages in forbearance programs fell for the sixth week in a row to its lowest level in two months as of July 12, according to the Mortgage Bankers Association.
The state of play: MBA’s estimates show 3.9 million homeowners now in forbearance plans. Demand also has risen significantly as mortgage application volume jumped 4.1% last week with applications to purchase a home 19% higher than a year ago — the ninth straight week of annual gains.
Why it matters: The numbers show the continued strength of the housing market, as mortgages have jumped and applications for the government's payment suspension program have tailed off since May.
- It also highlights a growing divide between the wealthy and other Americans.
What they're saying: “Almost half of borrowers remaining in forbearance are now in an extension of the original term, while the remainder are in their initial forbearance plan," said Mike Fratantoni, MBA’s chief economist.
- "The pace of new forbearance requests remains quite low compared to earlier in the crisis, but we are watching carefully for any increases due to either the pick-up in COVID-19 cases or the cessation of enhanced unemployment insurance benefits at the end of this month.”
Of note: MBA’s latest Forbearance and Call Volume Survey covers the period from July 6 through July 12 and represents 75% of the first-mortgage servicing market (37.3 million loans).