Tuesday, October 24, 2017

Freddie Mac: Mortgage Serious Delinquency rate increased in September

by Bill McBride on 10/24/2017 05:09:00 PM

Freddie Mac reported that the Single-Family serious delinquency rate in September was at 0.86%, up from 0.84% in August.  Freddie's rate is down from 1.02% in September 2016.

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

This is the highest serious delinquency rate since May of this year.

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

Fannie Freddie Seriously Delinquent RateClick on graph for larger image

In the short term - over the next several months - the rate will probably increase slightly due to the hurricanes.

After the hurricane bump, maybe the rate will decline another 0.2 to 0.3 percentage points or so to a cycle bottom, but this is pretty close to normal.

Note: Fannie Mae will report for September soon.