From the MBA: Mortgage Delinquencies Decrease Slightly in the Second Quarter of 2026 (note: this was released last week).
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 4.37 percent of all loans outstanding at the end of the second quarter of 2026, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
The delinquency rate was down 7 basis points from the first quarter of 2026 and up 44 basis points from one year ago. The percentage of loans in the process of foreclosure in the second quarter of 2026 increased by 3 basis points to 0.67 percent.
“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, CMB, 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.”
Added Walsh, “Some loans are continuing to move to later stages of delinquency. 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.”
Walsh noted that the labor market has shown recent signs of weakness, and delinquencies in other forms of consumer debt such as student loans, credit cards, and auto loans have grown in the past few years. These factors may be indicative of homeowner distress, exacerbated by stretched affordability and a slowing in home equity accumulation.
emphasis added
The following graph shows the percent of loans delinquent by days past due. Overall delinquencies decreased in Q2. The overall delinquency rate is close to pre-pandemic levels.
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