Mortgage Delinquencies Increased In Q4 2025

From the MBA: Mortgage Delinquencies Increase in the Fourth Quarter of 2025

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.26 percent of all loans outstanding at the end of the fourth quarter of 2025, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was up 27 basis points from the third quarter of 2025 and up 28 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the fourth quarter remained unchanged at 0.20 percent.

“Mortgage delinquencies increased across all three major loan types – Conventional, FHA, and VA – in the last three months of the year,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The most pronounced uptick was with FHA loans, which reached a delinquency rate of 11.52 percent, the highest level since the second quarter of 2021. While earlier-stage FHA delinquencies remained relatively flat compared to the previous quarter, later-stage, 90+ day delinquencies increased by 76 basis points. The FHA foreclosure inventory rate also grew to the highest level since the first quarter of 2020.”

Added Walsh, “The fourth quarter results may have been impacted by the expiration of pandemic-era, FHA relief options as well as disparities in the labor market – a key determinant of mortgage delinquency levels.”

Walsh noted that serious delinquencies – which include loans 90+ days delinquent and in foreclosure – vary by year of origination. For FHA loans, the vintage years 2020 and 2021 are performing better than the vintage years 2022 and 2023, when mortgage rates rose and affordability was especially stretched. With FHA volume increasing, mortgage rates moderating, and borrower credit characteristics improving on newer FHA originations, the performance of recent cohorts may temper stress on overall FHA portfolios.

emphasis added

The following graph shows the percent of loans delinquent by days past due. Overall delinquencies increased in Q4. The overall delinquency rate is at pre-pandemic levels.