Fannie and Freddie: Single Family Serious Delinquency Rate Decreases Slightly in January - InvestingChannel

Fannie and Freddie: Single Family Serious Delinquency Rate Decreases Slightly in January

Freddie Mac reported that the Single-Family serious delinquency rate in January was 0.55%, unchanged from 0.55% December. Freddie’s rate is down year-over-year from 0.66% in January 2023. This is below the pre-pandemic lows. Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

Fannie Mae reported that the Single-Family Serious Delinquency decreased to 0.54% in January from 0.55% in December. The serious delinquency rate is down from 0.64% in January 2023. This is below the pre-pandemic lows. The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

Fannie and Freddie Delinquencies Click on graph for larger image.

These are mortgage loans that are “three monthly payments or more past due or in foreclosure”. Mortgages in forbearance are being counted as delinquent in this monthly report but are not reported to the credit bureaus.

For Fannie, by vintage, for loans made in 2004 or earlier (1% of portfolio), 1.62% are seriously delinquent (down from 1.67% the previous month).

For loans made in 2005 through 2008 (1% of portfolio), 2.44% are seriously delinquent (down from 2.53%).

For recent loans, originated in 2009 through 2023 (98% of portfolio), 0.47% are seriously delinquent (unchanged from 0.47%). 

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