Key facts
- Fannie Mae and Freddie Mac completed 15,855 foreclosure prevention actions in May, a decrease from April.
- Permanent loan modifications accounted for the largest share of May's activity, with 6,616 completed.
- The number of loans in forbearance increased slightly to 37,644 at the end of May.
- Delinquencies rose during May, with 30- to 59-day delinquencies increasing to 313,592.
- Foreclosure starts fell by 2.3% to 7,979 in May.
- Refinance volume dropped to 67,281 in May, attributed to higher mortgage rates.
Foreclosure prevention activity at Fannie Mae and Freddie Mac declined in May, with a total of 15,855 actions completed, down from 17,201 in April. The Federal Housing Finance Agency (FHFA) attributed the decrease to a sharp fall in refinance volume, driven by rising mortgage rates.
Permanent loan modifications, the largest component of foreclosure prevention actions, decreased to 6,616 in May from 7,484 in April. Payment deferrals and completed repayment plans also saw reductions. Forbearance plans edged lower to 2,313 from 2,344.
Despite the overall decline in prevention actions, the number of loans in forbearance increased slightly to 37,644. Delinquencies, however, moved higher, with 30- to 59-day delinquencies rising to 313,592 and loans 60 or more days delinquent increasing to 246,634.
Foreclosure starts decreased by 2.3% to 7,979, and third-party and foreclosure sales dropped 11.9% to 1,167. Refinance activity weakened considerably, with 67,281 refinances in May compared to 96,028 in April. The average 30-year fixed mortgage rate rose to 6.44% in May from 6.33% in April, impacting refinance volume.