Ultra-low mortgage rates and pent-up demand for single-family homes will offset continued economic uncertainty and a supply shortage in 2021, with the net result being a 3.3% increase in California home sales and a modest 1.3% increase in the median price next year versus 2020, according to a California Association of Realtors forecast published Tuesday.
California home prices to grow more slowly next year, Realtors forecast, but sales may be stronger
With only a few months left to go, sales this year are expected to be
Jb Reed | Bloomberg | Getty Images
The number of borrowers in government Covid-19-related mortgage bailout programs is shrinking, but those in private-label or bank bailouts is rising.
This suggests that there is still pain ahead in the mortgage market, as some borrowers are simply not recovering enough financially to afford their home loans.
The total number of mortgages in active forbearance programs, where borrowers delay their monthly payments for at least three months, declined by 26,000 last week or 0.7%, according to Black Knight, a mortgage technology and data firm. This marks four consecutive weeks of improvement, but the pace has been slowing for the past few weeks.
As of Sept. 15, just under 3.7 million homeowners remain in these plans, representing 7% of all active mortgages. Together, these loans represent $781 billion in unpaid principal. The number of forbearance plans are now down more than 22% from the