Wednesday, November 29, 2017

Freddie Mac: Mortgage Serious Delinquency rate unchanged in October

by Bill McBride on 11/29/2017 12:43:00 PM

Freddie Mac reported that the Single-Family serious delinquency rate in October was at 0.86%, unchanged from 0.86% in September.  Freddie's rate is down from 1.03% in October 2016.

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". 

Fannie Freddie Seriously Delinquent RateClick on graph for larger image

The recent slight increase in the delinquency rate was probably due to the hurricanes - and we might see a further increase over the next couple of months (These are serious delinquencies).

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 October soon.