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Freddie Mac: Mortgage Serious Delinquency Rate Decreased Slightly in February

Summary:
Freddie Mac reported that the Single-Family serious delinquency rate in February was 0.69%, down slightly from 0.70% in January. Freddie's rate is down from 1.06% in February 2018.Freddie's serious delinquency rate peaked in February 2010 at 4.20%.This matches the lowest serious delinquency rate for Freddie Mac since December 2007.These are mortgage loans that are "three monthly payments or more past due or in foreclosure".  Click on graph for larger imageThe increase in the delinquency rate in late 2017 and early 2018 was due to the hurricanes (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 0.7% range - but this is close to a bottom.Note: Fannie Mae will report for February soon.

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Freddie Mac reported that the Single-Family serious delinquency rate in February was 0.69%, down slightly from 0.70% in January. Freddie's rate is down from 1.06% in February 2018.

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

This matches the lowest serious delinquency rate for Freddie Mac since December 2007.

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

Freddie Mac: Mortgage Serious Delinquency Rate Decreased Slightly in FebruaryClick on graph for larger image

The increase in the delinquency rate in late 2017 and early 2018 was due to the hurricanes (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 0.7% range - but this is close to a bottom.

Note: Fannie Mae will report for February soon.
Bill McBride
A full time blogger, Mr. McBride retired as a senior executive from a small public company in the '90s. Mr. McBride holds an MBA from the University of California, Irvine, and has a background in management, finance and economics.

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