According to the Mortgage Bankers Association (MBA) National Delinquency Survey, the mortgage delinquency rate rose to a seasonally adjusted 3.97% at the end of the second quarter.
This is 3 basis points more than in the first quarter and 60 basis points more than in the second quarter of 2023.
The share of loans subject to foreclosure proceedings in the second quarter fell by 1 basis point to 0.13%.
“Compared to the same period last year, mortgage delinquencies have increased across all product types,” said Marina Walsh, CMB, vice president of industry analysis at the MBA, in a statement. “While delinquencies are still low by historical standards, the recent increase corresponds to a rising unemployment rate, which historically has been closely correlated with mortgage performance.”
“The composition of mortgage delinquencies by stage has changed,” adds Walsh. “As of the second quarter of 2024, earliest-stage delinquencies – loans that are 60 days or less past due – accounted for the entire year-over-year increase. Meanwhile, loans with severe delinquencies – loans that are 90 days or more past due or in foreclosure – fell to their lowest level since 1984 as servicers help at-risk homeowners avoid foreclosure through loan settlement options that can mitigate temporary hardships.”
Compared to the last quarter, the seasonally adjusted mortgage default rate for all outstanding loans increased.
The 30-day delinquency rate increased gradually by 1 basis point to 2.26%, the 60-day delinquency rate increased by 3 basis points to 0.70%, and the 90-day delinquency rate decreased by 1 basis point to 1.01%.
By loan type, the overall default rate for conventional loans increased 2 basis points from the previous quarter to 2.64%. The FHA default rate increased 21 basis points to 10.60%, and the VA default rate decreased 3 basis points to 4.63%.
The five states with the largest quarterly increases in the overall delinquency rate included Mississippi (58 basis points), Louisiana (54 basis points), Indiana (53 basis points), Ohio (53 basis points) and West Virginia (52 basis points).
Photo: Alexander Grey
