by Bill McBride on 8/31/2012 01:54:00 PM
Friday, August 31, 2012
Fannie Mae reported that the Single-Family Serious Delinquency rate declined in July to 3.50% from 3.53% June. The serious delinquency rate is down from 4.08% in July last year, and this is the lowest level since April 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 July to 3.42%, from 3.45% in June. Freddie's rate is only down slightly from 3.51% in July 2011. Freddie's serious delinquency rate peaked in February 2010 at 4.20%. This is the lowest level for Freddie since August 2009.
These are loans that are "three monthly payments or more past due or in foreclosure".
Click on graph for larger image
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 some progress, the "normal" serious delinquency rate is under 1% - and it looks like it will be several years until the rates back to normal.