US Mortgage Delinquency Rate Up Quarter-Over-Quarter and Year-Over-Year

On Thursday, the Mortgage Bankers Association (MBA) released the results of its latest National Delinquency Survey (NDS). The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.94% of all loans outstanding at the end of Q1.

Quarter-over-quarter, the delinquency rate was up 6 basis points; and year-over-year, the delinquency rate was up 38 basis points. The percentage of loans on which foreclosure actions were started in the first quarter remained unchanged at 0.14%.

Adding background and analysis to the results of the NDS, MBA Vice President of Industry Analysis Marina Walsh said:

“Overall mortgage delinquencies increased slightly in Q1, but not across all three of the major loan types. Delinquencies declined for FHA loans, were relatively flat for conventional loans, and increased for VA loans. Notably, all three loan types saw an increase in delinquencies compared to one year ago. Higher unemployment, lower personal savings, increases in property taxes and insurance, and a run-up in credit card debt and delinquency contributed to conditions that would make it tougher for some homeowners to make their mortgage payments.”

At the end of 2023, the Department of Veterans Affairs encouraged mortgage servicers to implement a foreclosure moratorium until the end of May 2024. With this pause came an increase in VA loans that remained delinquent, but not in foreclosure inventory.”