by Bill McBride on 4/30/2014 05:43:00 PM
Wednesday, April 30, 2014
Fannie Mae reported today that the Single-Family Serious Delinquency rate declined in March to 2.19% from 2.27% in February. The serious delinquency rate is down from 3.02% in March 2013, and this is the lowest level since November 2008.
The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.
Earlier Freddie Mac reported that the Single-Family serious delinquency rate declined in March to 2.20% from 2.29% in February. Freddie's rate is down from 3.03% in March 2013, and is at the lowest level since February 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".
Click on graph for larger image
Both Fannie Mae and Freddie Mac serious delinquency rates have fallen 0.83 percentage points over the last year, and at that pace the serious delinquency rates will probably be below 2% mid-year 2014 - and will be under 1% in late 2015.
Note: The "normal" serious delinquency rate is under 1%.
Maybe serious delinquencies will be back to normal in late 2015 or 2016.