Will The Mortgage Forbearance Crash The Housing Market? When the mortgage forbearance program was implemented, 2.2 million homeowners were accepted into the mortgage forbearance program. As of this month there are still, 2.2 million people in the mortgage forbearance program. This on top of record setting stats in the current housing market, when the mortgage forbearance program expires, will we see the mother of all housing market crashes? In this video we explore the idea of when the mortgage forbearance program expires, will we see the housing market crash….
1. Demand is supressed by lack of inventory: https://www.nationalmortgagenews.com/news/millennials-drove-housing-market-demand-to-new-heights-in-2020 2. Inventory is Starting to Climb Upwards again: https://cdn.nar.realtor/sites/default/files/documents/ehs-05-2021-overview-2021-06-22.pdf 3. Sales did go down 3 months consecutively – https://cdn.nar.realtor/sites/default/files/documents/ehs-05-2021-overview-2021-06-22.pdf 4. Active Listings are historically low, it is picking back up past the previous years’ rate https://www.realtor.com/research/topics/housing-demand/ Over 72% of Gen Z (18-24) want to buy a house in the next 2-5 years. 5. Listings are starting to jump back up https://www.cnbc.com/2021/07/01/epic-housing-shortage-may-finally-be-starting-to-lift.html 6. Realtor.Com Housing Demand Overview https://www.realtor.com/research/market-outlook/ 7. Housing Supply is going up steadily – but still ow inventory. https://fred.stlouisfed.org/series/MSACSR The months’ supply is the ratio of houses for sale to houses sold. This statistic provides an indication of the size of the for-sale inventory in relation to the number of houses currently being sold https://www.cnbc.com/2021/02/09/mortgage-delinquencies-sink-to-pandemic-low.html Mortgage DElinquency Rate – CFPB – 90+ Days https://www.consumerfinance.gov/data-research/mortgage-performance-trends/mortgages-90-or-more-days-delinquent/#mp-line-chart-container 8. 2 Million Homeowner’s are still in Mortgage Forbearance: https://www.cnbc.com/2021/06/29/cfpb-beefs-up-protections-for-homeowners-but-will-not-ban-foreclosures-.html