Fannie Mae reported today that the Single-Family Serious Delinquency rate declined in July to 2.00% from 2.05% in June. The serious delinquency rate is down from 2.70% in July 2013, and this is the lowest level since October 2008.



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



Earlier this week, Freddie Mac reported that the Single-Family serious delinquency rate declined in July to 2.02% from 2.07% in June. Freddie's rate is down from 2.70% in July 2013, and is at the lowest level since January 2009. Freddie's serious delinquency rate peaked in February 2010 at 4.20%.



Both Fannie and Freddie's serious delinquency rates will probably be below 2% in August.



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



Click on graph for larger image



The Fannie Mae serious delinquency rate has fallen 0.70 percentage points over the last year, and at that pace the serious delinquency rate will be under 1% in early 2016.



Note: The "normal" serious delinquency rate is under 1%.



Maybe serious delinquencies will be close to normal in 2016.