The delinquency rate for mortgage loans on one-to-four-unit residential properties during the second quarter decreased to a seasonally adjusted rate of 4.37% of all loans outstanding, according to data from the Mortgage Bankers Association (MBA).
The delinquency rate was down 7 basis points from the first quarter and up 44 basis points from the second quarter of 2025. The percentage of loans in the process of foreclosure in the second quarter of 2026 increased by 3 basis points to 0.67%.
“Mortgage delinquencies decreased slightly across all loan types in the second quarter of 2026. Nonetheless, the broader trend is that both delinquencies and foreclosures have increased over the past year,” said Marina Walsh, MBA’s vice president of industry analysis. “The mortgage delinquency rate rose 44 basis points and the foreclosure inventory rate increased by almost 20 basis points from last year’s second quarter.”
Walsh noted this situation is occurring amid a weakening labor market and rising delinquencies in other aspects of consumer debt have intensified, which may be indicative of homeowner distress exacerbated by stretched affordability and slowing home equity accumulation.
“Some loans are continuing to move to later stages of delinquency,” Walsh continued. “The seriously delinquent rate – the non-seasonally adjusted percentage of loans that are 90 days or more past due or in the process of foreclosure – increased for the fourth consecutive quarter. Furthermore, FHA serious delinquencies are becoming pronounced, increasing more than 225 basis points from the previous year.”
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