Mike (Mish) Shedlock | Jun 26, 2020 02:33AM ET
The number of US mortgage loans in forbearance plans rose by 79,000 this past week. This was the first jump in three weeks.
Black Knight (NYSE:BKI) reported the increase.
Since the beginning of May, the number of active mortgage forbearance plans has ranged between 4.5 million and 5 million.
The unpaid balance now tops $1 trillion.
It will become harder and harder to pay that back. I suspect most will eventually roll past-due amounts into a new loan. But first, people will have to make a number of on-time full monthly payments.
These loans are not reported to credit agencies as delinquencies, but it is not possible to refinance loans in forbearance until a number of current payments are made.
h2 Disastrous Unemployment Claims/h2The jobs picture is not making thing any easier.
Initial claims rose by 1.48 million this week, but continued claims at 19.52 million tell the real story.
20 million people out of work for 8 straight weeks tells the real story.
Even the perennially late IMF is beginning to catch on, asserting this week that this is "a crisis like no other."
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