by Calculated Risk on 12/27/2010 06:11:00 PM

Freddie Mac reported that the serious delinquency rate increased to 3.85% in November from 3.82% in October. The following graph shows the Freddie Mac serious delinquency rate (loans that are "three monthly payments or more past due or in foreclosure"):

Click on graph for larger image in graph gallery.

Some of the rapid increase last year was probably because of foreclosure moratoriums, and from modification programs because loans in trial mods were considered delinquent until the modifications were made permanent. As modifications have become permanent, they are no longer counted as delinquent.

The increases in October and November are probably related to the new foreclosure moratoriums. The rate will probably start to decrease again in 2011.

Note: Fannie Mae reported the serious delinquency rate declined slightly in October (they are a month behind Freddie Mac).