Freddie Mac reported that the Single-Family serious delinquency rate decreased in March to 1.20% from 1.26% in February. Freddie’s rate is down from 1.73% in March 2015. This is the lowest rate since August 2008.
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”.
Note: Fannie Mae reported last week.
Although the rate is generally declining, the “normal” serious delinquency rate is under 1%.
The serious delinquency rate has fallen 0.53 percentage points over the last year, and at that rate of improvement, the serious delinquency rate will not be below 1% until the second half of this year.
I expect an above normal level of Fannie and Freddie distressed sales through 2016 (mostly in judicial foreclosure states).