Mortgage Delinquencies Decline Slightly in Q2 2026

Mortgage delinquencies for one- to four-unit residential properties saw a slight decrease in the second quarter of 2026, yet they remained elevated compared to the same period in the previous year. This trend indicates that a growing number of borrowers are progressing into later stages of delinquency. These findings are detailed in the Mortgage Bankers Association (MBA)'s National Delinquency Survey, which was released on Thursday. The seasonally adjusted mortgage delinquency rate concluded the second quarter at 4.37% of all outstanding loans. This represents a 7 basis point reduction from the first quarter but a 44 basis point increase from a year prior. Concurrently, the share of loans in the foreclosure process escalated to 0.67%, marking a 3 basis point rise from the first quarter and a 19 basis point increase from the previous year. Marina Walsh, MBA's vice president of industry analysis, stated in a company release that while mortgage delinquencies across all loan types diminished in the second quarter of 2026, the overarching trend shows a year-over-year increase in both delinquencies and foreclosures. Specifically, the 30-day delinquency rate fell by 3 basis points to 2.21%, and the 60-day delinquency rate declined by 5 basis points to 0.73%. However, the 90-day delinquency rate saw a marginal increase of 1 basis point, reaching 1.43%. Delinquencies experienced a reduction across all major loan categories on a quarterly basis. The conventional delinquency rate decreased by 3 basis points to 2.72%, while the Federal Housing Administration (FHA) delinquency rate dropped by 9 basis points to 11.79%. The U.S. Department of Veterans Affairs (VA) delinquency rate also declined, falling by 10 basis points to 4.89%. Despite these quarterly improvements, all three loan types exhibited higher delinquency rates when compared to their figures from a year ago. FHA borrowers, in particular, continued to exhibit significant signs of financial strain. The non-seasonally adjusted seriously delinquent rate, which encompasses loans that are at least 90 days past due or are in foreclosure, rose to 2.06%. This is a 3 basis point increase from the preceding quarter and a substantial 49 basis point increase from the previous year. The serious delinquency rate specifically for FHA loans saw a significant year-over-year increase of 227 basis points.