Freddie Mac reported that the Single-Family serious delinquency rate declined in September to 1.02%, down from 1.03% in August. Freddie’s rate is down from 1.41% in September 2015.
This is the lowest rate since July 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 0.39 percentage points over the last year, and at that rate of improvement, the serious delinquency rate could be below 1% next month (October).
Note: Fannie Mae will report in the next few days.