Freddie Mac reported that the Single-Family serious delinquency rate decreased in May to 1.11% from 1.15% in April. Freddie’s rate is down from 1.58% in May 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”.
Although the rate is generally declining, the “normal” serious delinquency rate is under 1%.
The Freddie Mac serious delinquency rate has fallen 0.47 percentage points over the last year, and at that rate of improvement, the serious delinquency rate will be below 1% in a few months.
Note: Fannie Mae reported yesterday.