“Target volumes are now down 110,000 (-5.9%) from the same period last month, with the pace of improvement slowing slightly in recent weeks,” said Andy Walden, economist and director of market research at Black Knight. “The total number of launches on schedule this week was higher, mainly due to the increase in restart activity. The launch of the new plan, although slightly up from last week, remains below the five-week moving average. ”
Meanwhile, the number of exits from plans has reached a minimum since the end of May. Of the plans reviewed since last Tuesday, 41% have driven out of plans, up from 36% at the same time in July.
Walden expects activity to pick up in the coming weeks as the abstinence expires.
“Approximately 200,000 plans are currently slated for review in the last two weeks of August, with about one-third of them reaching their final expiration date based on current abstinence limits,” Walden wrote on his blog. “The final repayment volumes will increase significantly in September and October.”