Freddie Mac: Mortgage Serious Delinquency Rate Decreased in July

Freddie Mac reported that the Single-Family serious delinquency rate in July was 0.78%, down from 0.82% in June. Freddie's rate is down from 0.85% in July 2017.

Freddie's serious delinquency rate peaked in February 2010 at 4.20%.

This is the lowest serious delinquency rate for Freddie Mac since March 2008.

These are mortgage loans that are "three monthly payments or more past due or in foreclosure". 

Click on graph for larger image

The increase in the delinquency rate late last year was due to the hurricanes - no worries about the overall market (These are serious delinquencies, so it took three months late to be counted).

I expect the delinquency rate to decline to a cycle bottom in the 0.5% to 0.75% range - but this is close to a bottom.

Note: Fannie Mae will report for July soon.

from Calculated Risk https://ift.tt/2MZq1Qx