WASHINGTON–The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.04% of all loans outstanding at the end of the first quarter of 2025, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
Overall delinquencies also increased in Q2.
According to the MBA, the big increase in 2025 in the 90-day category was due to loans in forbearance (included as delinquent, but not reported to the credit bureaus).
The percent of loans in the foreclosure process increased year-over-year from 0.46% in Q1 2024 to 0.49% in Q1 2025 (red) but remains historically low.
One Concern
The MBA analysis found the primary concern is the increase in FHA and VA delinquency rates. It did note, however, that some of the recent increase is probably due to the hurricanes last year and wildfires in California.
