Fiscal package will prevent record high delinquencies

A surge in the unemployment rate to 12% in the second quarter will put upward pressure on the mortgage delinquency rate, but an additional $600 week in unemployment insurance should keep the rate under 7%. Moreover, given the temporary nature of the shock, relatively tight lending standards in recent years and high levels of home equity, lenders will offer widespread forbearance. That will prevent any rise in the foreclosure start rate this year.