Mortgage delinquency falls to historic levels in Puerto Rico

Despite the high cost of living that continues to strain household budgets, Puerto Rico is experiencing historically low levels of mortgage delinquency. According to data compiled by the Office of the Commissioner of Financial Institutions (OCIF), as of December 2025, the 30-day delinquency rate was 3%, the 60-day rate was 1%, and the 90-day rate was 2%.

Economists and banking specialists consulted by EL VOCERO, W Journal’s sister publication, attribute this trend to factors such as refinancings carried out during the low-rate mortgage boom that followed the pandemic, the use of properties to generate rental income, and the growing awareness among homeowners that losing a home today would be much more difficult to recover given the market scarcity.

A fourth factor, according to economist and professor of economics José Caraballo Cueto, is that those who have been able to qualify for mortgages are a small number of people with good credit and high incomes.

“If you have a select group of borrowers, it’s possible that you’ll have low delinquency rates because initially there were few risks, because they were low-risk borrowers,” said Caraballo Cueto.

“It could also reflect that these borrowers are prioritizing their mortgage payments over other expenses, because if there’s inflation and low delinquency, it means they’re prioritizing their mortgage payments, and they’re making inflation adjustments in other areas,” she added.

The president of the Puerto Rico Bankers Association, Zoimé Álvarez, confirmed that the country is experiencing historically low levels of delinquency and crime.

The executive explained that the fact that there are payment delays of 30, 60, and 90 days does not mean that they will result in foreclosures.

“In Puerto Rico, foreclosures remain significantly lower, and we can clearly see this in the banks, which currently have very little inventory in their portfolios. Nobody profits from foreclosures, and that’s not the banking business,” Álvarez commented.

The executive director of the Puerto Rico chapter of the Mortgage Bankers Association (MBA), Ricardo Negrón, agreed, adding that the current housing shortage indirectly creates concern among consumers, who internalize the idea that they cannot afford to lose their secure home.

“As Puerto Ricans, we try to safeguard what is most important to us: our roof over our heads. Regardless of the economic circumstances many consumers face, if they encounter a situation they cannot manage, they often turn to their families, and their families support them,” Negrón commented.

The executive added that if a consumer were to realize they own a home of some value and then become homeless, they would wonder where they would go, and this would cause great concern. Therefore, they would do everything possible to keep their mortgage payments up to date.

“They have placed greater importance on mortgage payments because it is something essential that we all need: a secure roof over our heads. And the secure roof we have today will be fiercely defended,” Negrón stated, mentioning that, based on current trends, the last debt people would consider defaulting on would be their mortgage.

Home Sales See Slight Increase

On the other hand, the real estate market showed signs of a slight increase in purchases of new and used homes during 2025, although access to affordable housing remains one of the biggest challenges for thousands of Puerto Rican families, according to specialists.

Despite the increase in sales of new and used homes, the supply of properties for less than $250,000 remains limited, even though banks have multiple support programs for first-time buyers.

According to data provided by the Office of the Commissioner of Financial Institutions (OCIF), 815 new homes and 9,432 used homes were sold in 2025, for a total of 10,247 homes purchased. Meanwhile, in 2024, approximately 744 new home sales and 9,251 used home sales were reported, for a total of 9,995, reflecting a difference of 252 homes between the two years.

Given this situation, the president of the Banking Association commented that there is still a shortage of affordable housing under $250,000.

“Experts have already stated that the construction of a new home exceeds $350,000, leaving a fairly large market and only a minimal number of used homes available to meet needs according to one’s economic means,” Álvarez commented.

Indeed, when comparing the average sales prices of new and used homes between 2024 and 2025, an increase is observed. In 2025, the average price of a new home, according to OCIF data, was $418,064, while the average price of used homes was $222,894. In 2024, new homes averaged $398,693 and used homes $214,771. Analyzing these numbers reveals an increase of between $8,000 for used homes and $20,000 for new homes.