For the first time in 10 years, Freddie Mac’s single-family serious delinquency rate (more than 90 days past due or in foreclosure) dropped below 1 percent  in January to .99 percent. Freddie Mac is the first GSE to reach this point, while the rest of the U.S. mortgage market as a whole reported a serious delinquency rate of 3.13 percent at the end of 2016 according to MBA figures. The last time Freddie Mac reported a serious delinquency rate of less than 1 percent was in 2007 at .65 percent.
In addition to low rates of serious delinquency, Freddie Mac reports a total mortgage portfolio increase rate of 3.7 percent in January. Freddie Mac funded $39 billion in mortgages in January alone, and report $456 billion funded for all of 2016. Freddie Mac also made 3,105 loan modifications in January 2017.
In Freddie Mac’s February 2017 Outlook , inflation is considered as the housing market moves into spring. "Which course inflation takes over the next year will have important implications for housing and mortgage markets. On balance, the risks to higher inflation outweigh lower inflation, but in our estimation, most of the reflationary factors have already been baked into current interest rates and inflation is likely to increase only modestly over the next two years,” said Freddie Mac Chief Economist Sean Becketti. "With the housing market on the verge of the spring home buying season, this is good news in an environment where historically low mortgage rates will help offset the pace of house price growth and lack of for-sale inventory in many markets."