Friday, February 26, 2016

Freddie Mac: Mortgage Serious Delinquency rate increased slightly in January

by Bill McBride on 2/26/2016 02:30:00 PM

Freddie Mac reported that the Single-Family serious delinquency rate increased in January to 1.33% from 1.32% in December. Freddie's rate is down from 1.86% in January 2015.

Freddie's serious delinquency rate peaked in February 2010 at 4.20%.

These are mortgage loans that are "three monthly payments or more past due or in foreclosure". 

Note: Fannie Mae is expected to report early next week.

Fannie Freddie Seriously Delinquent RateClick on graph for larger image

Although the rate is generally declining, the "normal" serious delinquency rate is under 1%. 

The serious delinquency rate has fallen 0.53 percentage points over the last year, and at that rate of improvement, the serious delinquency rate will not be below 1% until the second half of this year.

I expect an above normal level of Fannie and Freddie distressed sales through 2016 (mostly in judicial foreclosure states).