Forbearance rate slides to record low – MBA

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“With the number of borrowers in forbearance decreasing to less than half a million, the pace of monthly forbearance exits reached its lowest level since MBA started tracking exits in June 2020,” said Marina Walsh, vice president of industry analysis at MBA. “Servicers are expected to continue making small incremental inroads to the remaining loans in forbearance.”

Additionally, the percentage of borrowers who were current on mortgage payments increased in April to 95.64%, the highest level so far this year.

“The best indicator of loan performance is overall national employment. The US unemployment rate is still below 4%, leaving borrowers in a good position to make their monthly mortgage payments,” Walsh explained.