August 2024 Highlights - Foreclosure Prevention
The Enterprises' Foreclosure Prevention Actions:
- The Enterprises completed 14,614 foreclosure prevention actions in August, bringing the total to 7,033,154 since the start of the conservatorships in September 2008. Approximately 39 percent of these actions have been permanent loan modifications.
- There were 5,818 permanent loan modifications in August, bringing the total to 2,726,336 since the conservatorships began in September 2008.
- Approximately 73 percent of loan modifications in August involved extend term only. Modifications with principal forbearance accounted for 26 percent of all loan modifications during the month.
- The number of borrowers who received payment deferrals after completing a forbearance plan increased from 5,403 in June to 5,582 in August.
- Initiated forbearance plans increased from 10,396 in July to 10,713 in August. The total number of loans in forbearance also increased from 34,901 at the end of July to 38,060 at the end of August, representing approximately 0.12 percent of the total loans serviced and 7.5 percent of the total delinquent loans.
The Enterprises' Mortgage Performance:
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The 30-59 day delinquency rate decreased to 0.92 percent while the serious delinquency rate increased slightly to 0.51 percent at the end of August.
The Enterprises' Foreclosures:
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Third-party and foreclosure sales increased slightly to 1,058 while foreclosure starts increased 5 percent to 7,594 in August.
August 2024 Highlights - Refinance Activities
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Total refinance volume increased in August 2024 as mortgage rates decreased but remained above the levels observed through 2021. Mortgage rates fell in August 2024: the average interest rate on a 30-year fixed rate mortgage decreased from 6.85 percent in July to 6.50 percent in August.
- The percentage of cash-out refinances decreased to 70 percent in August after rising as high as 82 percent over the last three years. Higher mortgage rates have reduced the opportunities for non cashout borrowers to refinance at lower rates and lower their monthly payments.