US Mortgage Delinquencies Decline Slightly in Q2

On Thursday, the Mortgage Bankers Association (MBA) reported that the seasonally adjusted delinquency rate for mortgage loans on one-to-four-unit residential properties fell to 4.3% at the end of Q2.

By stage, the 30-day delinquency rate decreased 3 basis points from Q1 to 2.21%, while the 60-day rate declined 5 basis points to 0.73%. The 90-day delinquency rate increased 1 basis point to 1.43%.

By loan type, the seasonally adjusted delinquency rate for conventional loans decreased 3 basis points to 2.72%. The FHA rate declined 9 basis points to 11.79%, while the VA rate fell 10 basis points to 4.89%. Year-over-year, delinquency rates increased 12 basis points for conventional loans, 122 basis points for FHA loans, and 57 basis points for VA loans.

Commenting on the report, MBA Vice President of Industry Analysis Marina Walsh said:

“Mortgage delinquencies decreased slightly across all loan types in the second quarter of 2026. Nonetheless, the broader trend is that both delinquencies and foreclosures have increased over the past year. The mortgage delinquency rate rose 44 basis points and the foreclosure inventory rate increased by almost 20 basis points from last year’s second quarter.

Some loans are continuing to move to later stages of delinquency. The seriously delinquent rate—the non-seasonally adjusted percentage of loans that are 90 days or more past due or in the process of foreclosure—increased for the fourth consecutive quarter. Furthermore, FHA serious delinquencies are becoming pronounced, increasing more than 225 basis points from the previous year.”