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Foreclosure rate headed for a small bump

With the vast majority of mortgage borrowers protected by fixed rates, it is not a surprise that the early delinquency rate has risen only marginally since the start of the year. And our forecasts for real incomes to recover and the unemployment rate to stay low should prevent a surge in delinquencies over the next couple of years. That said, the backlog that has built up from the foreclosure ban means we are forecasting a modest bump in the foreclosure start rate in the coming quarters.

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