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Though overall forbearance share is down, the number of extensions is rising as coronavirus hardship filings surpass the 90-day mark that delineates the end of traditional forbearance plans.
Conditions have improved for the first time since November.
With over 4 million millennials entering prime home buying age each year through 2023, purchase activity will be driven much higher, according to Ellie Mae.
Rates are forecasted to remain at the current low levels for the rest of 2020, driving steady refinance volume.
The number of loans going into coronavirus-related forbearance fell for the seventh straight week, but the Mortgage Bankers Association predicts the rate will increase if the number of coronavirus cases continues to rise.
Record-low interest rates allowed homebuyers to purchase $32,000 more house for the same monthly payment compared to last July, boosting affordability to the highest level since 2016.
With low inventory and coronavirus limiting accessibility, nearly half of shoppers made offers sight-unseen in June, according to Redfin.
The combined impact of coronavirus forbearance periods ending while low rates persist means large workloads for title insurers, appraisers and others.