Fannie Mae reported today that the Single-Family Serious Delinquency rate declined in September to 1.59% from 1.62% in August. The serious delinquency rate is down from 1.96% in September 2014, and this is the lowest level since August 2008.
The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.
Note: These are mortgage loans that are "three monthly payments or more past due or in foreclosure".
Note: Freddie Mac reported last week.
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The Fannie Mae serious delinquency rate has only fallen 0.37 percentage points over the last year - the pace of improvement has slowed - and at that pace the serious delinquency rate will not be below 1% until 2017.
The "normal" serious delinquency rate is under 1%, so maybe Fannie Mae serious delinquencies will be close to normal some time in 2017. This elevated delinquency rate is mostly related to older loans - the lenders are still working through the backlog.