Freddie Mac reported that the Single-Family serious delinquency rate declined in June to 2.79% from 2.85% in May. Freddie’s rate is down from 3.45% in June 2012, and this is the lowest level since May 2009. Freddie’s serious delinquency rate peaked in February 2010 at 4.20%.
These are mortgage loans that are “three monthly payments or more past due or in foreclosure”.
Earlier this week, LPS reported that total delinquencies increased in June – but that was mostly due to an increase in short term delinquencies (seasonally delinquencies increase every June). Freddie Mac is reporting serious delinquencies only.
Note: Fannie Mae will report their Single-Family Serious Delinquency rate for June next week.
Click on graph for larger image
Although this indicates some progress, the “normal” serious delinquency rate is under 1%.
At the recent rate of improvement, the serious delinquency rate will not be under 1% until 2016 or so.