Freddie Mac reported that the Single-Family serious delinquency rate in February was at 0.98%, down from 0.99% in January. Freddie’s rate is down from 1.26% in February 2016. That is the lowest reading since June 2008.
Notice how tame serious delinquencies were during the housing/credit bubble. The US seems to be repeating the housing bubble in terms of house price growth and low serious delinquencies, but without the higher levels of mortgage originations to borrowers with credit scores less than 620.
Bear in mind, the Case-Shiller reading is for January and it is almost April. Be that as it may, home price growth is at 5.73% YoY versus wage growth at 2.3% YoY, over 2x. And yes, Seattle, Portland and Denver lead the nation in YoY growth in home prices. The slowest growing cities? New York City and Cleveland (the Shooting Guards JR Smith/Iman Shumpert effect having been traded from the Knicks to the Cavaliers).
It says here that when home prices are growing at two times wage growth it would mean we have a housing bubble … again.