US mortgage delinquency rate annually rises 60% in 2nd quarter

By Ovunc Kutlu

ISTANBUL (AA) - The mortgage delinquency rate in the US annually increased 60% in the second quarter of this year, the Mortgage Bankers Association (MBA) said Thursday.

The rate on mortgage delinquency, when a borrower is late on one or more monthly mortgage payments, was up 3 basis points from the first quarter of this year, according to the MBA's National Delinquency Survey.

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.97% of all loans outstanding by the end of the second quarter this year.

"While delinquencies are still low by historical standards, the recent increase corresponds with a rising unemployment rate, which has historically been closely correlated with mortgage performance," MBA’s Vice President of Industry Analysis Marina Walsh said in a statement.

"As of the second quarter of 2024, the earliest stage delinquencies – those loans 60 days or less delinquent – accounted for the entire increase from the previous year," she added.

The 30-day delinquency rate increased 1 basis point to 2.26% in the second quarter, while the 60-day delinquency rate rose 3 basis points to 0.70% from the previous quarter.

The US state of Mississippi led the quarterly increase in overall delinquency rate with 58 basis points, according to the MBA.