The second quarter delinquency rate for mortgage loans on one-to-four-unit residential properties declined to a seasonally adjusted rate of 3.93% of all loans outstanding, according to data from the Mortgage Bankers Association (MBA).
The delinquency rate was down 11 basis points from the first quarter and down 4 basis points from the second quarter of 2024. The percentage of loans on which foreclosure actions were started in the second quarter dropped by 3 basis points to 0.17%.
By loan type, the total seasonally adjusted delinquency rate for conventional loans decreased 10 basis points to 2.60% over the previous quarter. The total FHA seasonally adjusted delinquency rate decreased 5 basis points to 10.57%, and the total VA seasonally adjusted delinquency rate decreased 31 basis points to 4.32%.
“The seasonally-adjusted mortgage delinquency rate declined to 3.93 percent in the second quarter and remains below the historic average of 5.21 percent dating back to 1979,” said Marina Walsh, MBA’s vice president of industry analysis. “Conventional loan performance continues to perform exceptionally well, with delinquencies hovering near record lows. This contrasts with the rise in government delinquencies over the past few years. While overall mortgage delinquencies are relatively flat compared to last year, the composition has changed. Earlier-stage delinquencies declined while serious delinquencies – those loans 90 or more days delinquent or in foreclosure – increased. This was the case in the second quarter of 2025 across the three major product types: conventional, FHA, and VA.”
