Fannie Mae: Mortgage Serious Delinquency rate declined in June, Lowest since December 2008

Fannie Mae reported today that the Single-Family Serious Delinquency rate declined in June to 2.77% from 2.83% in May. The serious delinquency rate is down from 3.53% in June 2012, and this is the lowest level since December 2008.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.

Earlier Freddie Mac reported that the Single-Family serious delinquency rate declined in June to 2.79% from 2.85% in May. Freddie's rate is down from 3.45% in June 2012, and is at the lowest level since May 2009. Freddie's serious delinquency rate peaked in February 2010 at 4.20%.

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

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Although this indicates progress, the "normal" serious delinquency rate is under 1%.

At the recent rate of improvement, the serious delinquency rate will not be under 1% until 2016 or so.