Freddie Report Could Signal Worst May Be Over for Delinquencies

The serious delinquency rate on Freddie Mac guaranteed single-family loans fell for a second consecutive month during April, the first time this has happened since 2007. Although it may be too early to celebrate that the worst of the housing crisis is over, servicers are hopeful that it may be a sign of better times ahead. Freddie reported that in April 4.06% of its one-to-four family loans were 90 days or more past due, down from a reading of 4.13% in March and 4.2% in February. The GSE's monthly activity report also shows a slowdown in refinancing activity and mortgage-backed securities issuance. Freddie purchased $18.4 billion in refinanced loans in April, down from $23.1 billion from the prior month. Meanwhile, MBS issuance fell to $25.1 billion, down from $31 billion in March. Ginnie Mae MBS issuance totaled $32.6 billion in April.