US Mortgage Delinquencies Fall 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 3.93% at the end of Q2, down 11 basis points from Q1 and 4 basis points from a year earlier.

The share of loans in which foreclosure actions were initiated declined to 0.17%, a drop of 3 basis points from the previous quarter.

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

“The seasonally adjusted mortgage delinquency rate declined to 3.93% in the second quarter and remains below the historic average of 5.21% dating back to 1979. Conventional loan performance continues to perform exceptionally well, with delinquencies hovering near record lows. This contrasts with the rise in government delinquencies over the past few years.

While overall mortgage delinquencies are relatively flat compared to last year, the composition has changed. Earlier-stage delinquencies declined while serious delinquencies—those loans 90 or more days delinquent or in foreclosure—increased. This was the case in the second quarter of 2025 across the three major product types: conventional, FHA, and VA.”