- HUD announced that Federal Housing Administration providing 2-month extension of foreclosure and eviction moratorium through August 31 2020
- Mortgage rates hit another all-time low of 3.13% the week of June 16, according to Freddie Mac
- Mortgage purchase applications jumped to 11-year high during week of June 16, according to Mortgage Bankers Association
- 52% homeowners concerned about affording their mortgage payments and 47% considered selling due to being unable to afford payments
Good news for homeowners and tenants having a tough time paying their housing costs these days. The Department of Housing and Urban Development announced that the Federal Housing Administration has extended its moratorium on foreclosures and evictions through August 31, 2020.
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This moratorium extension applies to homeowners with FHA-insured Title II Single-Family forward and Home Equity Conversion mortgages. Borrowers with FHA-insured mortgages MUST continue making their monthly mortgage payments (if able) or seek mortgage payment forbearance through their lenders.
The average rate for a 30-year fixed mortgage fell to a record low of 3.13% the week of June 16, according to Freddie Mac. Also, the average 15-year rate fell to 2.58%, the lowest in seven years.
In addition to bond yields falling sharply due to spikes in COVID-19 infections, Jerome Powell, the Chair of the Federal Reserve, was not optimistic about his outlook for the economy again because of the rising incidence of COVID. Keith Gumbinger, vice president of HSH.com, said that both the falling bond yields and escalating spikes of the coronavirus “…put downward pressure on interest rates.”
A plus side to the economy, however, is coming from the housing market. Mortgage purchase applications jumped to an 11-year high last week, according to the Mortgage Bankers Association. Sam Khater, Freddie Mac’s Chief Economist, said, “While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over +20% from a year ago, the highest since January 2009.
Some not so good news, 52% of homeowners said they are “routinely concerned” about making their mortgage payments and 47% said they’ve considered selling their home because “they were unable to afford their mortgage payments,” according to a new poll by The National Association of REALTORS.
This poll also reported that 35% of homeowners had either skipped or missed a mortgage payment from March – June. Despite financially insecure homeowners knowing about mortgage relief options, the solid majority of those homeowners worry they won’t qualify for that relief.
Other concerns homeowners worry about being able to afford during the pandemic include insurance (43%), utilities (36%), food (36%), cell phone (30%) and WiFi/internet (26%).
Thanks to HousingWire’s Julie Falcon, Kathleen Howley and Alex Roha.