by Risk calculated on 26/09/2022 17:05:00
Freddie Mac reported that the rate of serious delinquency in single-family families in August was 0.70%, compared to 0.73% in July. The Freddie rate is down year-over-year from 1.62% in August 2021.
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 mortgages that are “three or more monthly payments past due or in foreclosure.”
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Forborne mortgages are considered past due in this monthly report, but are not reported to the credit bureaus.
This is very different from the increase in delinquencies following the housing bubble. Lending standards have been pretty strong over the past decade, and most of these homeowners have equity in their homes — and they’ll be able to restructure their loans once they’re employed.
The serious crime rate was 0.60% just before the pandemic – almost back.