Mortgage Delinquencies Increased in Q3 2025

Mortgage delinquencies in the United States increased in the third quarter of 2025, with the delinquency rate for one-to-four-unit residential properties rising to 3.99% of all loans outstanding by the end of the quarter—a slight increase of 6 basis points from the previous quarter and 7 basis points higher than one year ago. This marks the second highest rate since the all-time low observed in the second quarter of 2023.​

Key Figures

• The percentage of new foreclosure actions rose by 3 basis points to 0.20% for the quarter.​

• FHA loans were the primary driver behind the increase, with the seriously delinquent rate (90+ days overdue or in foreclosure) for FHA mortgages rising by nearly 50 basis points year-over-year, while conventional and VA seriously delinquent rates remained mostly flat.​

• By stage:

  • 30-day delinquency: 2.12% (up 2 basis points)

  • 60-day delinquency: 0.76% (up 4 basis points)

  • 90-day delinquency: 1.11% (unchanged)

• The seriously delinquent rate overall was 1.61%, up 4 basis points from the previous quarter.​

Regional and Economic Details

• States with the largest quarterly increases include Arizona, Louisiana, Indiana, Iowa, and Texas.​

• Underlying causes are cited as a softer labor market, increased personal debt, rising property taxes and insurance, and declining home prices in some areas, making it harder for homeowners—especially those with FHA loans—to sell or refinance.​

• The increase did not reflect the end of COVID-19-era loss mitigation options; these changes may affect future quarters.​

• Financial stress due to inflation outpacing wage growth is making it increasingly difficult for borrowers, especially those with lower credit scores, to stay current on mortgage payments.​

Overall, the data indicates an uptick in mortgage delinquencies in Q3 2025, with economic pressures and loan-type disparities contributing to the trend.