The mortgage delinquency rate for residential properties decreased to 3.93% in the second quarter, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
That’s down 11 basis points from the first quarter and down 4 basis points from the second quarter of 2024.
The percentage of loans on which foreclosure actions were started in the second quarter fell by 3 basis points to 0.17%.
“The seasonally-adjusted mortgage delinquency rate declined to 3.93 percent in the second quarter and remains below the historic average of 5.21 percent dating back to 1979,” says Marina Walsh, vice president of industry analysis for the MBA, in a statement. “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,” Walsh adds. “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.”
Walsh notes that the labor market has shown early signs of weakness, and the balances and delinquencies of other forms of consumer debt such as student loans, credit card, and auto loans have grown. These factors suggest future increases in mortgage delinquencies.
Photo: Agê Barros