Mortgage Delinquencies Increase in the Fourth Quarter of 2024

According to Walsh, while the labor market remains relatively strong and often tracks with mortgage performance, some of today’s headwinds include inflationary pressures, lower personal savings rates, natural disasters, increasing consumer debt, higher tax and insurance payments, and higher debt-to-income ratios. All of these factors may be impacting government borrowers to a greater extent than conventional borrowers. 

• Compared to last quarter, the seasonally adjusted mortgage delinquency rate increased for all loans outstanding. By stage, the 30-day delinquency rate decreased 9 basis points to 2.03 percent, the 60-day delinquency rate increased 3 basis points to 0.76 percent, and the 90-day delinquency bucket increased 11 basis points to 1.19 percent. 

• By loan type, the total delinquency rate for conventional loans decreased by 1 basis point to 2.62 percent over the previous quarter. The FHA delinquency rate increased 57 basis points to 11.03 percent, and the VA delinquency rate increased  12 basis points to 4.70 percent. 

• On a year-over-year basis, total mortgage delinquencies increased for all loans outstanding. The delinquency rate increased 1 basis point for conventional loans, increased 22 basis points for FHA loans and increased 63 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 fourth quarter was 0.45 percent, remaining unchanged from the third quarter of 2024 and 2 basis points lower than one year ago.

• 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 1.68 percent. It increased 13 basis points from last quarter and  increased 16 basis points from last year. The seriously delinquent rate increased 5 basis points for conventional loans, increased 49 basis points for FHA loans, and increased 32 basis points for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate increased 2 basis points for conventional loans, increased 70 basis points for FHA loans and increased 57 basis points for VA loans.

• The five states with the largest quarterly increases in their overall delinquency rate were: Florida (99 basis points), South Carolina (59 basis points), North Carolina (40 basis points), Georgia (39 basis points), and Louisiana (32 basis points).