by Bill McBride on 12/31/2014 05:22:00 PM
Wednesday, December 31, 2014
Fannie Mae: Mortgage Serious Delinquency rate declined slightly in November, Lowest since October 2008
Fannie Mae reported today that the Single-Family Serious Delinquency rate declined slightly in November to 1.91% from 1.92% in October. The serious delinquency rate is down from 2.44% in November 2013, and this is the lowest level since October 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 was unchanged in November at 1.91%. Freddie's rate is down from 2.43% in November 2013, and is at the lowest level since December 2008. 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
The Fannie Mae serious delinquency rate has fallen 0.53 percentage points over the last year, and at that pace the serious delinquency rate will be under 1% in late 2016 - although the rate of decline has slowed recently.
Note: The "normal" serious delinquency rate is under 1%.
Maybe serious delinquencies will be close to normal in late 2016.