New MBA data reveals rising 90-day delinquencies despite stable short-term rates
Mortgage delinquencies inched up over the past year, largely due to a rise in longer-term delays, according to the Mortgage Bankers Association’s (MBA) latest National Delinquency Survey.
The delinquency rate for mortgage loans on one-to-four-unit residential properties was 3.92% at the end of the third quarter, a slight increase of 30 basis points compared to a year earlier. This overall increase comes despite a modest drop in early-stage delinquencies.
“Mortgage delinquencies have inched up over the past year,” said Marina Walsh, vice president of industry analysis at MBA.
Walsh noted that while the overall rate declined slightly in the third quarter compared to the previous quarter, this was due to a decrease in 30-day delinquencies.
“Later-stage delinquencies rose last quarter, and overall delinquencies were up 30 basis points from one year ago,” she added.
While delinquencies remain low by historical standards, they are increasingly skewed toward borrowers facing longer-term difficulties. Data shows that the rate of 30-day delinquencies fell by 14 basis points to 2.12% in the third quarter, but 60-day delinquencies increased by three basis points to 0.73%, and 90-day delinquencies climbed seven basis points to 1.08%.
The share of mortgages considered “seriously delinquent,” meaning 90 days or more overdue or already in foreclosure, was 1.55% at the end of the quarter. This marked a 12-basis-point increase from the prior quarter and a three-basis-point rise from the previous year.
Read next: Mortgage rates head higher after Trump win
Walsh pointed out that the effects of recent hurricanes Helene and Milton may become evident in the next reporting period, as those affected areas could see a temporary increase in delinquencies.
The performance of different loan types also offered insights. Conventional loans saw a slight improvement, with delinquencies declining to 2.63%, while FHA loans and VA loans experienced larger shifts. FHA loans recorded a notable drop in delinquencies, by 14 basis points, bringing the rate to 10.46%. VA loans saw a modest decrease, down five basis points to 4.58%.
Year-over-year, however, all loan types experienced increases: delinquency rates rose by 13 basis points for conventional loans, 96 basis points for FHA loans, and 82 basis points for VA loans.
MBA’s delinquency report includes loans that are at least one payment overdue but does not count loans already in foreclosure. The foreclosure process rate rose slightly to 0.45% in the third quarter, up two basis points from the second quarter, though it remains four basis points lower than the same period last year.
Regionally, several states experienced above-average increases in their overall delinquency rates, with Texas seeing the highest increase at 24 basis points, followed by Arkansas (14 basis points), Florida (13 basis points), Arizona (12 basis points), and Wyoming (9 basis points).
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
