Thursday, December 28, 2017

Freddie Mac: Mortgage Serious Delinquency rate up sharply in November

by Bill McBride on 12/28/2017 04:07:00 PM

Freddie Mac reported that the Single-Family serious delinquency rate in November was at 0.95%, up sharply from 0.86% in October.  Freddie's rate is down from 1.03% in November 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

This increase in the delinquency rate was due to the hurricanes - and we might see a further increase over the next month (These are serious delinquencies, so it takes three months late to be counted).

After the hurricane bump, maybe the rate will decline another 0.2 to 0.4 percentage points or so to a cycle bottom, but this is pretty close to normal.

Note: Fannie Mae will report for November soon.