In February, the single-family serious delinquency rate reached its lowest level since July 2008, reports Bill McBride of Calculated Risk, citing Fannie Mae data.

The rate went to 1.52% in February from 1.55% in January. In February 2015, the rate was 1.83% after peaking in February 2010 at 5.59%. The serious delinquency rate represents mortgage loans that are "three monthly payments or more past due or in foreclosure".

The Fannie Mae serious delinquency rate has only fallen 0.31 percentage points over the last year - the pace of improvement has slowed - and at that pace the serious delinquency rate will not be below 1% until 2017.

The "normal" serious delinquency rate is under 1%, so maybe Fannie Mae serious delinquencies will be close to normal some time in 2017. This elevated delinquency rate is mostly related to older loans - the lenders are still working through the backlog.

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