The severe mortgage default rate fell in October

by calculated risks 11/23/2020 06:12:00 PM

Freddie Mac reported that the single-family serious delinquency rate in October was 0.66%, down from 0.67% in September. Freddie’s rate is down year-on-year from 1.32% in October 2021.

Freddie’s seriously tardiness rate peaked in February 2010 at 4.20% after the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

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

Click on the chart for a larger image

Delinquent mortgages are counted on this monthly report but are not reported to the credit bureaus.

The serious lateness rate was at 0.60% just before the pandemic – it’s almost back to that level.

Note that multi-family payment delays are increasing and reached 0.15% in October.

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