Freddie Mac: Mortgage Serious Delinquency Rate Decreased in August

Freddie Mac: Mortgage Serious Delinquency Rate Decreased in August

Industry Update
September 27, 2021

Source: CalculatedRisk

Freddie Mac reported that the Single-Family serious delinquency rate in August was 1.62%, down from 1.74% in July. Freddie’s rate is down year-over-year from 3.17% in August 2020.

Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble, and peaked at 3.17% in August 2020 during the pandemic.

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

This is very different from the increase in delinquencies following the housing bubble. Lending standards have been fairly solid over the last decade, and most of these homeowners have equity in their homes – and they will be able to restructure their loans once (if) they are employed.

 

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