Mortgage holders falling through gaps in safety net

More than 1 million homeowners are at least 30 days behind on their mortgage payments despite aid from the CARES Act, a sign that the law meant to ease financial stress and ward off foreclosures has let many fall through the cracks, data from real estate analytics company Black Knight shows.

Misconceptions and a lack of awareness have led to the pitfall, say housing counselors, leading some in both the House and Senate to call for automatically enrolling borrowers who are 60 days behind on their mortgages into forbearance, or a temporary reduction or pause in payments. A disproportionate share of minorities were failing to take advantage of forbearance, according to Census data.

On HoustonChronicle.com: Renters, mortgage holders often unaware of federal aid packages

“An automatic forbearance would allow homeowners who do not reach out to their servicers a needed pause so they can have the opportunity to limit their

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Home equity surges as demand soars and mortgage rates hover near lows

After a brief stall in home sales at the start of the coronavirus pandemic, homebuyers came rushing back in — so fast that prices never even took a hit. In fact, the gains in prices accelerated quickly, causing home equity to soar even more.  

Home equity for homeowners with a mortgage rose 6.6% annually in the second quarter, according to CoreLogic. Collectively, that adds up to a gain of $620 billion, or $9,800 per home.

Home values have continued to rise and are now up 5.1% annually, according to Zillow. Price gains accelerated in 48 of the 50 largest metropolitan housing markets across the country.

The reason is twofold: Demand is outpacing supply by a lot, and mortgage rates are sitting near record lows. The latter gives buyers more purchasing power.

The total supply of homes for sale was just over 29% lower annually for the week ending Sept. 12,

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Home Prices Skyrocketing Because Of Low Mortgage Rates, Not Because Covid-19 Increased Demand For Large Homes

Home prices are skyrocketing in most U.S. markets despite Covid-19, a recession and a shockingly high unemployment rate.

Many analysts are speculating that part of the boom in house prices is caused by Covid-19—that some people are concerned about Covid-19 contagion and don’t want to live in tight, multi-family buildings anymore, so they’re buying single-family homes in the suburbs. Another theory along the same lines is that because working from home has skyrocketed, some people want more space, so they’re buying larger single-family homes, especially if their kids are home all day, too. This seems to be happening in metro New York City, but what about places that weren’t hit as hard by Covid-19 and aren’t as dense as New York City?

Certainly the lower mortgage interest rates are a huge part of the current home price boom. The 30-year fixed-rate mortgage rate the first week of January 2020

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