Mortgage Delinquencies See Slight Increase, But Remain Historically Low
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Mortgage delinquencies across the United States showed a slight uptick in June, a development highlighted in the latest report from Cotality, a prominent provider of property information and analytics. Despite this minor increase, national delinquency levels are still hovering at historically low figures.
Current Mortgage Delinquency Rates
According to Cotality’s Loan Performance Indicators report, 2.9% of U.S. mortgages were at least 30 days overdue as of June. This figure reflects a marginal decrease from 3% recorded in June 2024 but represents an increase from 2.8% in the first quarter of 2025.
Molly Boesel, a senior principal economist at Cotality, stated, “The national delinquency rate rose to 2.9%, yet it remains below the December peak of 3.2%. Serious delinquencies are stable, fluctuating between 0.8% and 1%. The transition of loans from current to 30 days past due remained relatively unchanged compared to the previous quarter.” She further emphasized potential risks posed by rising unemployment, especially in certain regions.
Stability in Foreclosure Rates
Despite the slight rise in delinquency, foreclosure rates have remained consistent, fluctuating between 0.2% and 0.3%. This stability indicates that the majority of homeowners are successfully managing their mortgage payments without falling into severe financial distress.
Breakdown of Delinquency Categories
- Early-Stage Delinquencies (30-59 Days Past Due): 1.6%, a decrease from 1.7% a year ago.
- Adverse Delinquencies (60-89 Days Past Due): 0.4%, with no change since June 2024.
- Serious Delinquencies (90+ Days Past Due, including Foreclosure): 0.9%, stable compared to the previous year and significantly lower than 4.3% in August 2020.
- Transition Rate (Mortgages moving from current to 30 days past due): 0.6%, down from 0.9% in June 2024.
Regional Insights on Delinquency Trends
Certain states and metropolitan areas are witnessing rising delinquency trends. Notably, the District of Columbia experienced the most significant annual increase, up 0.6 percentage points. Other states like Florida, California, Minnesota, Oregon, Utah, Wisconsin, and Georgia saw increases of 0.1 percentage points. The majority of states, however, reported either minor declines or maintained stable rates.
Among U.S. metropolitan areas, 104 out of 384 noticed year-over-year delinquency increases. Farmington, New Mexico, observed the largest jump, increasing by 1 percentage point. Other cities facing similar issues include Sebring-Avon Park, Florida (+0.7 points), and Beckley, West Virginia (+0.6 points). Serious delinquencies notably rose in Asheville, North Carolina (+0.6 points), alongside cities in Florida, Oklahoma, Texas, and Georgia-South Carolina, which all recorded increases of 0.5 points.
Conclusion: Navigating Localized Stress within a Resilient National Framework
Cotality’s analysis reveals critical insights into the state of mortgage performance, demonstrating how national averages can sometimes obscure regional pressures. While overall mortgage health in the U.S. remains strong, experts are cautious about economic factors that may adversely impact borrowers in the near future.
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