Morning Report: Loans in forbearance falls

Vital Statistics:

	Last	Change
S&P futures	3343	-22.6
Oil (WTI)	39.87	-0.16
10 year government bond yield		0.65%
30 year fixed rate mortgage		2.94%

Stocks are lower this morning on no real news. Bonds and MBS are flat.

Home prices rose 0.6% MOM and 3.9% YOY according to the Case-Shiller Home Price Index.

We have a big week of data with GDP on Wednesday, personal income and outlays on Thursday, and the jobs report on Friday. With the Fed on hold, it probably won’t be all that market-making but still be aware.

The Democrats have introduced a new stimulus bill, with an additional $1,200 check. They are expanding eligibility for checks as well.

The number of loans in forbearance fell last week, according to the MBA. “The share of loans in forbearance continues to decline and is now at a level not seen since mid-April. Many homeowners with GSE loans are exiting forbearance into a deferral plan and resuming their original mortgage payment, but waiting to pay the forborne amount until the end of the loan,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “However, the overall picture is still somewhat of a mixed bag. The recent uptick in forbearance requests, particularly for those with FHA or VA loans, is leaving the Ginnie Mae share elevated, as the pace of new requests meets or exceeds the pace of exits.”