DELINQUENCY DRIFT

Conforming single-family delinquency rates are low but very slowly rising and returning to normal. Freddie Mac reports serious delinquencies at 0.59% up from 0.55% Y-o-Y and trivially lower than 0.60% pre-Covid. Fannie Mae’s shows serious delinquencies at 0.58% vs. 0.53% Y-o-Y and 0.65% pre-Covid. As long as these rates stay low, there is little cause for concern. But housing represents $60 trillion or approximately 1/3 of household wealth.