May 2025 Highlights - Foreclosure Prevention
The Enterprises' Foreclosure Prevention Actions:
- The Enterprises completed 18,250 foreclosure prevention actions in May 2025, bringing the total to 7,196,778 since the start of the conservatorships in September 2008. Approximately 39 percent of these actions have been permanent loan modifications.
- There were 7,609 permanent loan modifications in May 2025, bringing the total to 2,780,266 since the conservatorships began in September 2008.
- Approximately 35 percent of loan modifications in May involved extend term only. Modifications with principal forbearance accounted for 64 percent of all loan modifications during the month.
- The number of borrowers who received payment deferrals after completing a forbearance plan decreased from 7,218 in April to 6,493 in May 2025.
- Initiated forbearance plans decreased from 7,603 in April to 7,371 in May 2025. The total number of loans in forbearance also decreased from 37,807 at the end of April to 35,900 at the end of May 2025, representing approximately 0.12 percent of the total loans serviced and 7.1 percent of the total delinquent loans.
The Enterprises' Mortgage Performance:
- The 30-59-day delinquency rate decreased slightly to 0.90 percent while the serious delinquency rate decreased to 0.54 percent at the end of May 2025.
The Enterprises' Foreclosures:
- Third-party and foreclosure sales increased 5 percent to 1,071 while foreclosure starts increased 4 percent to 7,402 in May 2025.
May 2025 Highlights - Refinance Activities
- Total refinance volume increased in May 2025, benefiting from April mortgage rates that stayed below the highs seen in January. Mortgage rates increased in May: the average interest rate on a 30-year fixed rate mortgage increased to 6.82 percent in May from 6.73 percent in April.
- Cash-out refinances as a percentage of refinances decreased slightly from 56 percent in April to 55 percent in May 2025 after rising as high as 82 percent over the last three years. Lower mortgage rates have increased the opportunities for non-cash-out borrowers to refinance at lower rates and lower their monthly payments.