Fannie Mae reported today that the Single-Family Serious Delinquency rate declined in October to 2.48% from 2.55% in September. The serious delinquency rate is down from 3.35% in October 2012, and this is the lowest level since December 2008.
The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.
Earlier this week, Freddie Mac reported that the Single-Family serious delinquency rate declined in October to 2.48% from 2.58% in September. Freddie’s rate is down from 3.31% in October 2012, and this is the lowest level since March 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”.
The Fannie Mae serious delinquency rate has fallen 0.87 percentage points over the last year, and at that pace the serious delinquency rate will be under 1% in less than 2 years. Note: The “normal” serious delinquency rate is under 1%.
Maybe serious delinquencies will be back to normal in late 2015 or 2016.