Fannie Mae reported that the Single-Family Serious Delinquency rate declined in October to 3.35% from 3.41% September. The serious delinquency rate is down from 4.00% in October last year, and this is the lowest level since March 2009.
The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.
Freddie Mac reported that the Single-Family serious delinquency rate declined in October to 3.31%, from 3.37% in September. Freddie’s rate is down from 3.54% in October 2011, and this is the lowest level since August 2009. Freddie’s serious delinquency rate peaked in February 2010 at 4.20%.
Note: These are mortgage loans that are “three monthly payments or more past due or in foreclosure”.
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In 2009, Fannie’s serious delinquency rate increased faster than Freddie’s rate. Since then, Fannie’s rate has been falling faster – and now the rates are at about the same level.
Although this indicates ongoing progress, the “normal” serious delinquency rate is under 1% – and it looks like it will take several years until the rates back to normal.
