Delinquency rates for mortgage loans remained low over the course of 2024, but climbed at the tail end of the year. In Q4 2024, the delinquency rate for mortgage loans on one- to four-unit residential properties increased to 3.98% of all loans, according to the Mortgage Bankers Association. The delinquency rate increased by 6 basis points from Q3 2024 and was up 10 basis points from the same time last year.
When looking at different loan types, the total delinquency rate for conventional loans decreased by just one basis point to 2.62% quarter-over-quarter, while government-backed loans saw larger increases. The FHA delinquency rate increased 57 basis points to 11.03%, and the delinquency rate for VA loans increased 12 basis points to 4.7%.
“Although mortgage delinquencies rose only ten basis points in the fourth quarter of 2024 compared to one year ago, the composition of the delinquencies changed,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Conventional delinquencies remain near historical lows, but FHA and VA delinquencies are increasing at a faster pace. By the end of the fourth quarter, the spread between the FHA and conventional delinquency rates reached 841 basis points, while the VA and conventional spread was 208 basis points.” Read more
