Serious delinquencies continued to fall, dropping from 1.40% in April to 1.38% in May, according to Calculated Risk's Bill McBride. Serious delinquency covers loans that are "three monthly payments or more past due or in foreclosure."

Overall, the rate has fallen 0.32 percentage points over the last year. At that pace, the serious delinquency rate will not be below 1% until the second half of 2017, according to McBride

However, the rate is the lowest it has been since June 2008 after peaking at in February 2010 at 5.59%.

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