According to Fannie Mae, the serious delinquency rate decreased to 4.44 percent in February from 4.45 percent in January. This is a decrease from a high of 5.59 percent in February 2010. Freddie reported the delinquency rate decreased to 3.63 percent in March from 3.82 percent in February. This is down from 4.13% in March 2010.
Builders Pulse reported some of the rapid increase in 2009 was likely due to foreclosure moratoriums, and also because loans in trial mods were considered delinquent until the modifications were made permanent. As modifications have become permanent, they are no longer counted as delinquent.
Although delinquencies typically decline in March, the decline for Freddie Mac delinquencies is larger than usual – and other data suggest the overall delinquency rate declined further in Q1. The MBA will release the Q1 National Delinquency Survey in May.