Weekly Mortgage News Roundup for Jan. 1, 2021

These are our top mortgage news stories from the past week. Give them a read so you can stay informed.

2020 ended on a high note with regard to mortgage rates -- namely, that they stayed put at historic lows. Here's what happened in the mortgage world over the past week.

• Home Sales Decline for the First Time in 5 Months

Despite low mortgage rates, home sales have started to dip. This could be a sign that buyers are getting fed up with inflated prices.

• 2020 Ends With 2.8 Million Americans in Mortgage Forbearance

Borrowers got relief this year during the coronavirus crisis -- the option to pause their monthly mortgage payments by putting their loans into forbearance. But with 2.8 million homeowners still in forbearance, it begs the question of what will happen once those borrowers need to start paying again.

• 1 Mortgage Lender Is Offering FHA Loans at Under 2%

You may now be able to snag an FHA loan with a historically-low interest rate. But to qualify, you'll need strong credit -- and there are some other strings attached.

• Mortgage Demand Declines as 2020 Winds Down

Mortgage activity slowed down during the holidays. Were buyers just distracted, or is this a sign that the housing market will start to cool down due to inflated home prices?

• How Will Being Late on a Mortgage Payment Impact My Credit?

A single late mortgage payment won't put you at risk of foreclosure -- but it could cause more credit score damage than you'd think. Here's how to avoid being tardy.

• Why Do Mortgage Refinance Lenders Care So Much About Credit Scores?

You'll need great credit to score a competitive interest rate on a mortgage refinance. Here's why refinance lenders do a credit check -- even though you're already a borrower.

• One Way to Get an Edge in Today's Real Estate Market: Skip the Mortgage

Most buyers can't afford to purchase a home outright. But if you're able to pay cash for a home, you're more likely to close on a deal.

Whether you're hoping to buy a new home in 2021, are looking at refinancing an existing home loan, or want to keep tabs on the housing market in general, be sure to check out The Ascent's mortgage coverage each week. We're busy gathering your top mortgage stories so you can stay informed.