Zillow Market Pulse: July 10, 2020
The number of mortgages in forbearance fell. The price of homebuilding materials has risen sharply. And the Federal Reserve’s lending program for small businesses is struggling to gain momentum.
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- According to Black Knight, 435,000 fewer loans were receiving assistance last week than the week prior.
- The decrease was driven in large part by the expiration of some deals struck in early April.
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- The price of lumber futures has risen more than 85% since early April.
- Improved builder confidence, as well as increased interest in home improvement projects, is likely fueling a surge in demand.
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- Strict conditions for businesses and heightened levels of risk for banks has led to a slow roll-out.
- Thousands of banks are eligible to participate as lenders, but only 300 had registered as of last week.
So what?
The decline in mortgage forbearance participation offers both positive and negative signs for the housing market. The 435,000-loan week-over-week
