The delinquency rate for mortgage loans on one-to-four-unit residential properties totaled 3.92% of all loans outstanding by the end of the third quarter of 2024, according to data from the Mortgage Bankers Association (MBA).
The delinquency rate was down 5 basis points from the second quarter but up 30 basis points from one year ago. The MBA added the percentage of loans on which foreclosure actions were started in the third quarter inched up by 1 basis point to 0.14%.
By loan type over the previous quarter, the total delinquency rate for conventional loans decreased 1 basis point to 2.63% while the FHA delinquency rate decreased 14 basis points to 10.46% and the VA delinquency rate decreased 5 basis points to 4.58%. The five states with the largest quarterly increases in their overall delinquency rate were: Texas (24 basis points), Arkansas (14 basis points), Florida (13 basis points), Arizona (12 basis points), and Wyoming (9 basis points).
“Mortgage delinquencies have inched up over the past year,” said Marina Walsh, MBA’s vice president of industry analysis. “Even though there was a small, third-quarter decline in the overall delinquency rate compared to the previous quarter, this was driven by a decrease in 30-day delinquencies. Later-stage delinquencies rose last quarter, and overall delinquencies were up thirty basis points from one year ago. While delinquencies remain low by historical standards, the composition of loans in delinquency is changing, with more 60-day delinquencies and 90-day+ delinquencies across all major loan types, compared to last quarter and one year ago.”
Walsh added the effects of Hurricanes Helene and Milton will likely impact the next quarterly report.
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