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

Fannie Mae reported today that the Single-Family Serious Delinquency rate declined in August to 2.61% from 2.70% in July. The serious delinquency rate is down from 3.44% in August 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 August to 2.64% from 2.70% in July. Freddie's rate is down from 3.36% in August 2012, and this is the lowest level since April 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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The Fannie Mae serious delinquency rate has fallen 0.83 percentage points over the last year, and at that pace the serious delinquency rate will be under 1% in about 2 years. Note: The "normal" serious delinquency rate is under 1%.

Maybe serious delinquencies will be back to normal in late 2015 or 2016.