• As of Tuesday, roughly 3.6 million homeowners remain in pandemic-related forbearance plans. That’s 6.8% of all active mortgages, representing $751 billion in unpaid principal.
  •  The government and private sector forbearance programs, initiated at the start of the pandemic, allow borrowers to delay their monthly payments for at least three months and for up to a year.



a car parked in front of a house: Homes in the North Park neighborhood of San Diego, California, U.S., on Wednesday, Sept. 2, 2020. U.S. sales of previously owned homes surged by the most on record in July as lower mortgage rates continued to power a residential real estate market that's proving a key source of strength for the economic recovery.


© Provided by CNBC
Homes in the North Park neighborhood of San Diego, California, U.S., on Wednesday, Sept. 2, 2020. U.S. sales of previously owned homes surged by the most on record in July as lower mortgage rates continued to power a residential real estate market that’s proving a key source of strength for the economic recovery.

The number of mortgages in active pandemic-related bailout plans rose by 21,000 in the past week after declining for six straight weeks, according to Black Knight, a mortgage technology and analytics firm. 

The increase was not across all mortgage types but among bank-held and private-labeled security loans (28,000), and, to a lesser extent, among FHA/VA loans (2,000). Those increases were offset by a decline of 9,000 Fannie Mae and Freddie Mac loans in forbearance.

The government and private sector forbearance programs, initiated at the start of the pandemic, allow borrowers to delay their monthly payments for at least three months and for up to a year. Forbearance is granted in three-month terms, and so far more than 75% of borrowers in bailouts are on extensions since March.

Video: How stimulus checks can lead to your money being worth less in the future (CNBC)

How stimulus checks can lead to your money being worth less in the future

UP NEXT

UP NEXT

“As of the 29th [of September], nearly 800,000 forbearance plans were still set to expire in September, down from 2 million at the start of

TOKYO, Oct 1 (Reuters)Japan’s factory activity posted its longest streak of declines on record in September, a private sector survey showed on Thursday, highlighting the struggle policymakers face to put the coronavirus-ravaged economy on a firm recovery path.

The health crisis has taken a huge toll on the manufacturing sector in the world’s third-largest economy, with output and exports struggling amid fragile global demand conditions.

The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) edged up to 47.7 in September from the previous month’s 47.2 and a preliminary 47.3 reading.

The headline index stayed below the 50.0 threshold that separates contraction from expansion for a 17th month – surpassing a 16-month run through June 2009 to mark the longest streak of declines on record.

The survey showed output, new orders and work backlog contracted again, although at a more modest pace, suggesting it may take a long time for Japan’s economy to fully recover from the massive impact of the COVID-19 crisis.

However, the PMI survey also provided encouraging evidence of the manufacturing sector moving a step closer to stabilisation in September.

“Subdued business conditions persisted across the Japanese manufacturing sector in September, but there were signs that the downturn has lost intensity,” said Tim Moore, economics director at IHS Markit.

“Some manufacturers noted that a turnaround in export sales to clients elsewhere in Asia had helped to offset some of the demand weakness across Europe and the United States.”

The survey boosted hopes of a long-term recovery in production volumes, with growth expectations for the year ahead rising to the highest since May 2018.

Japan’s economy suffered its worst postwar contraction in the second quarter as the health crisis delivered a heavy blow to international trade, while also paralysing business and consumer activity at home.