US Mortgage Delinquency Rates Increase in Q4

On Thursday, the Mortgage Bankers Association (MBA) reported that the seasonally adjusted delinquency rate for mortgage loans on one-to-four-unit residential properties rose to 4.26% at the end of 2025Q4, up 27 basis points from the previous quarter and up 28 basis points from a year earlier.

The share of loans in which foreclosure actions were initiated remained unchanged at 0.20%.

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

“Mortgage delinquencies increased across all three major loan types—Conventional, FHA, and VA—in the last three months of the year. The most pronounced uptick was with FHA loans, which reached a delinquency rate of 11.52%, the highest level since the second quarter of 2021. While earlier-stage FHA delinquencies remained relatively flat compared to the previous quarter, later-stage, 90+ day delinquencies increased by 76 basis points. The FHA foreclosure inventory rate also grew to the highest level since the first quarter of 2020.

The fourth quarter results may have been impacted by the expiration of pandemic-era, FHA relief options, as well as disparities in the labor market—a key determinant of mortgage delinquency levels.”