With the region still underwater and damage estimates still unknown, thinking about next month's mortgage payment is likely not on the mind of many Houstonians. As a result, the Federal Housing Administration along with Fannie Mae and Freddie Mac have announced that they will offer forbearance for at least 90 days to homeowners affected by Hurricane Harvey.
During this time borrowers will not be required to make their monthly mortgage payment, although interest on the loan will still accrue. For those more impacted by the hurricane's devastation, this forbearance may be extended up to one year.
In the aftermath of Hurrican Katrina in 2005, thousands of homeowners were unable to make their mortgage payments. Black Knight Financial Services estimates that if the impact is similar to that seen after Katrina, more than 75,000 homeowners in Houston may be unable to make their payments for at least two months and 45,000 could become seriously delinquent in the next four months.
Today, conforming no-point 30-year fixed mortgage rates averaging 3.75 percent while 15-year rates are near 3 percent. According to Freddie Mac, this marks a new low for 2017 thus far.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.