by Calculated Risk on 6/28/2013 04:20:00 PM

Fannie Mae reported that the Single-Family Serious Delinquency rate declined in May to 2.83% from 2.93% in April. The serious delinquency rate is down from 3.57% in May 2012, and this is the lowest level since January 2009.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.

Freddie Mac reported that the Single-Family serious delinquency rate declined in May to 2.85% from 2.91% in April. Freddie's rate is down from 3.50% in May 2012, and this is the lowest level since May 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".

Click on graph for larger image

Although this indicates some progress, the "normal" serious delinquency rate is under 1%. 

At the recent rate of improvement, the serious delinquency rate will not be under 1% until 2016 or even 2017.