Walsh noted that this coincides with the continued improvement in the labor market, with wage growth rising and the unemployment rate dropping to 4.2%.

Read more: Construction employment booms despite slowdown in overall job growth

“While there was some deterioration in the performance of borrowers in post-forbearance workouts, four out of five overall remained current through November,” she said.

On a non-adjusted basis, total loans that were current as a percent of servicing portfolio volume edged up to 94.58% in November from 94.32% in the previous month. Meanwhile, the number of completed loan workouts from 2020 and onward (repayment plans, loan deferrals/partial claims, loan modifications) that were current as a part of total completed workouts declined to 83.7% from 84%.

The share of Fannie Mae and Freddie Mac mortgage loans in forbearance was down by 16 basis points to 0.76%, and Ginnie Mae loan forbearances posted a 42-basis-point decrease to 2.10%. The forbearance share for portfolio loans and private-label securities (PLS) declined by 106 basis points to 3.94%.