Mortgage Delinquencies Decrease Slightly in the Second Quarter of 2026

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.

Key findings of MBA's Second Quarter of 2026 National Delinquency Survey:

Compared to last quarter, the seasonally adjusted mortgage delinquency rate decreased for all loans outstanding. By stage, the 30-day delinquency rate decreased 3 basis points to 2.21 percent, the 60-day delinquency rate decreased 5 basis points to 0.73 percent, and the 90-day delinquency bucket increased 1 basis point to 1.43 percent.
By loan type, the total seasonally adjusted delinquency rate for conventional loans decreased 3 basis points to 2.72 percent over the previous quarter. The total FHA seasonally adjusted delinquency rate decreased 9 basis points to 11.79 percent, and the total VA seasonally adjusted delinquency rate decreased 10 basis points to 4.89 percent.
On an annual basis, total mortgage delinquencies increased for all loans outstanding. The delinquency rate increased 12 basis points for conventional loans, increased 122 basis points for FHA loans and increased 57 basis points for VA loans from the previous year.
The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the second quarter was 0.67 percent, up 3 basis points from the first quarter of 2026 and 19 basis points higher than one year ago. The percentage of loans on which foreclosure actions were started in the second quarter fell by 4 basis points to 0.20 percent.
The non-seasonally adjusted seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 2.06 percent. It increased 3 basis points from last quarter and increased 49 basis points from last year. The seriously delinquent rate increased 3 basis points for conventional loans, decreased 3 basis points for FHA loans, and increased 1 basis point for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate increased 6 basis points for conventional loans, increased 227 basis points for FHA loans and increased 31 basis points for VA loans.
By region, mortgage delinquencies were generally higher in the South, Midwest and Northeast compared to the West. The seven states with the largest quarterly increases in their overall delinquency rate were: Maine (43 basis points), Michigan (39 basis points), Mississippi (39 basis points), Kansas (31 basis points), West Virginia (30 basis points), Kentucky (30 basis points), and South Carolina (30 basis points).

For the purposes of the survey, MBA asks servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage.

NOTE: For non-seasonally-adjusted (NSA) supplemental information on the performance of servicing portfolios by investor type, loans in forbearance by investor type, and the status of post-forbearance workouts, as well as servicer call volume metrics, please refer to MBA’s Monthly Loan Monitoring Survey at www.mba.org/lms.