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Today, in the Calculated Risk Real Estate Newsletter: Fannie Mae Single-Family Mortgage Serious Delinquency Rate Lowest since 2002
Brief excerpt: Fannie Mae reported that the Single-Family Serious Delinquency decreased to 0.54% in July from 0.55% in June. The serious delinquency rate is down year-over-year from 0.76% in July 2022. This is below the pre-pandemic low of 0.65% and the lowest rate since 2002.
The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.
These are mortgage loans that are “three monthly payments or more past due or in foreclosure”. Mortgages in forbearance are being counted as delinquent in this monthly report but are not reported to the credit bureaus.
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Since lending standards have been solid and most homeowners have substantial equity there will not be a huge wave of single-family foreclosures this cycle. This means that we will not see cascading price declines like following the housing bubble.You can subscribe at https://calculatedrisk.substack.com/.
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