Mortgage Delinquency Rate Increases in Q2

On Thursday, the Mortgage Bankers Association (MBA) released the results of its latest National Delinquency Survey. According to MBA data, the delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.97% of all loans outstanding at the end of Q2.

The mortgage delinquency rate was up 3 basis points from Q1 and up 60 basis points year-over-year. The percentage of loans on which foreclosure actions were started in Q2 declined 1 basis point to 0.13%.

MBA reports that the five states with the largest quarterly increases in their overall delinquency rate were: Mississippi (58 basis points), Louisiana (54 basis points), Indiana (53 basis points), Ohio (53 basis points), and West Virginia (52 basis points).

In comments accompanying the report, MBA Vice President of Industry Analysis Marina Walsh said:

“Mortgage delinquencies increased across all product types compared to this time last year. While delinquencies are still low by historical standards, the recent increase corresponds with a rising unemployment rate, which has historically been closely correlated with mortgage performance.

The composition of mortgage delinquencies by stage has evolved. As of the second quarter of 2024, the earliest stage delinquencies—those loans 60 days or less delinquent—accounted for the entire increase from the previous year. Meanwhile, seriously delinquent loans—those loans 90 days or more delinquent or in foreclosure—fell to their lowest levels since 1984 as servicers are helping at-risk homeowners avoid foreclosures through loan workout options that can mitigate temporary distress.”