The severe delinquency rate for single-household borrowers remained roughly steady in June, while the delinquency rate for multiple-household borrowers increased.

by Calculated Risk July 29, 2024 5:05 PM

Today’s Calculated Risk Real Estate Newsletter: Fannie and Freddie: Single-family serious delinquency rates nearly flat in June, multifamily rates up

excerpt:

While the serious delinquency rate for single-family homes remained roughly steady in June, the serious delinquency rate for multifamily homes increased again.
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Freddie Mac reported that the multifamily delinquency rate rose to 0.38% in June from 0.36% in April, but was down from a recent peak of 0.44% in January.

This chart shows Freddie’s multifamily severe delinquency rates since 2012. Delinquency rates remained high in 2012 after the housing bubble burst and the financial crisis.

The multifamily share has risen since the pandemic and has risen further recently as rent growth has slowed, vacancy rates have risen and borrowing rates have soared. The share spiked in January, dropped in February and March, but is now rising again. This will be something to watch as more apartments come on the market.