According to the Mortgage Bankers Association’s (MBA) National Delinquency Survey, the delinquency rate for mortgage loans on one-to-four-unit residential buildings grew to a seasonally adjusted rate of 3.97% of all loans outstanding at the end of the second quarter of 2024.
“Mortgage delinquencies increased across all product types compared to this time last year,” said Marina Walsh, CMB, MBA’s VP of Industry Analysis. “While delinquencies are still low by historical standards, the recent increase corresponds with a rising unemployment rate, which has historically been closely correlated with mortgage performance.”
Key Findings of MBA’s Q2 2024 National Delinquency Survey:
- Compared to last quarter, the seasonally adjusted mortgage delinquency rate increased for all loans outstanding. By stage, the 30-day delinquency rate increased 1 basis point to 2.26%, the 60-day delinquency rate increased 3 basis points to 0.70%, and the 90-day delinquency bucket decreased 1 basis point to 1.01%.
- By loan type, the total delinquency rate for conventional loans increased 2 basis points to 2.64% over the previous quarter. The FHA delinquency rate increased 21 basis points to 10.60%, and the VA delinquency rate decreased 3 basis points to 4.63%.
- On a year-over-year basis, total mortgage delinquencies increased for all loans outstanding. The delinquency rate increased 35 basis points for conventional loans, increased 165 basis points for FHA loans and increased 93 basis points for VA loans from the previous year.
The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the second quarter was 0.43 percent, down 3 basis points from the first quarter of 2024 and 10 basis points lower than one year ago.
The non-seasonally adjusted seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 1.43 percent. It decreased 1 basis point from last quarter and decreased 18 basis points from last year.
The seriously delinquent rate decreased 2 basis points for conventional loans, decreased 1 basis point for FHA loans, and increased 6 basis points for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate decreased 13 basis points for conventional loans, decreased 54 basis points for FHA loans and decreased 8 basis points for VA loans.
The five states with the largest quarterly increases in their overall delinquency rate were:
- Mississippi (58 basis points)
- Louisiana (54 basis points)
- Indiana (53 basis points)
- Ohio (53 basis points)
- West Virginia (52 basis points)
The delinquency rate increased by 60 basis points from a year ago and by 3 basis points from the first quarter of 2024. In Q2, the proportion of loans on which foreclosure proceedings were initiated decreased by 1 basis point, to 0.13%.
“The composition of mortgage delinquencies by stage has evolved,” Walsh said. “As of the second quarter of 2024, the earliest stage delinquencies—those loans 60 days or less delinquent—accounted for the entire increase from the previous year. Meanwhile, seriously delinquent loans—those loans 90 days or more delinquent or in foreclosure—fell to their lowest levels since 1984 as servicers are helping at-risk homeowners avoid foreclosures through loan workout options that can mitigate temporary distress.”
To read the full report, including more data and methodology, click here.
