The most recent Loan Performance Indicators from Cotality, which examines mortgage delinquencies both nationwide and in key cities, were issued. The percentage of mortgages in some form of delinquent (30 or more days past due, including foreclosures) decreased somewhat from 3% in 2024 to 2.9% in June 2025. Delinquencies, however, rose from 2.8% in Q1 of 2025.
“While the national delinquency rate inched up to 2.9%, it remains below December’s peak of 3.2%. Meanwhile serious delinquencies continue to move within a narrow band between 0.8% and 1%,” said Molly Boesel, Senior Principal Economist at Cotality. “The share of loans transitioning from current to 30 days delinquent was relatively unchanged quarter-over-quarter, and we saw a notable year-over-year decline although last year’s figure was briefly elevated. Overall, while delinquency rates remain historically low, regional pockets—such as the District of Columbia and select metro areas—are showing signs of upward movement, and recent increases in unemployment could put further pressure on borrowers in the months ahead. However, it is encouraging that delinquencies have not advanced to more severe stages.”
Although it increased little in June, the U.S. foreclosure rate is still between 0.2% and 0.3%, which is its five-year range. This implies that despite financial strains, the majority of debtors are avoiding foreclosure.
Loan Activity & Delinquency Rate Shifts
To obtain a comprehensive understanding of the mortgage market and loan performance health, Cotality looked at all levels of delinquency. The following were the delinquency and transition rates in the U.S. as of June 2025, along with the year-over-year (YoY) variations:
- Early-Stage Delinquencies (30 to 59 days past due): 1.6%, down from 1.7% in June 2024.
- Adverse Delinquency (60 to 89 days past due): 0.4%, unchanged from June 2024.
- Serious Delinquency (90 days or more past due, including loans in foreclosure): 0.9%, no change from June 2024. The June 2025 serious delinquency rate of 0.9% continues its downward trend from a high of 4.3% in August 2020.
- Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.9% in June 2024.
The total delinquency rate in seven states and the District of Columbia increased YoY in June 2025.
The locations with the highest increases were in:
District of Columbia (up 0.6 percentage points), followed by Florida, California, Minnesota, Oregon, Utah, Wisconsin, and Georgia (all up 0.1 percentage points)—while all other states had changes ranging between -0.4 and 0.0 percentage points.
The top areas include:
- Farmington, NM (up +1.0 percentage point)
- Sebring-Avon Park, FL (+0.7 percentage points)
- Beckley, WV (+0.6 percentage points)
All other YoY changes ranged between -1.0 and 0.5 percentage points.
In June 2025, the serious delinquency rate in 207 metro areas increased annually.
The primary regions include:
- Asheville, NC (up +0.6 percentage points)
- Lawton, OK
- Tampa- St. Petersburg-Clearwater, FL
- Lakeland-Winter Haven, FL
- Wichita Falls, Texas
- Punta Gorda, FL
- Augusta-Richmond County GA-SC (all up 0.5 percentage points)
For more data and methodology, click here.
