Mortgage Delinquencies Remain Stable in June Despite Borrower Financial Strain
WASHINGTON D.C. – U.S. mortgage delinquencies held steady in june, with 2.9% of all loans past due, according to teh latest Loan Performance Insights Report from Cotality. this represents a slight decrease from 3% in June 2024, even as economic pressures continue to impact American households.
While the national delinquency rate edged up from 2.8% in the first quarter of the year, it remains below the December 2024 peak of 3.2%. The report indicates a continued ability among most borrowers to avoid falling behind on mortgage payments, though regional variations are emerging.
Early-stage delinquencies, defined as 30 to 59 days past due, accounted for 1.6% of all loans, a decrease from 1.7% in June 2024.Delinquencies in the 60 to 89 days past due range remained unchanged at 0.4% compared to the previous month. Serious delinquencies – those 90 days or more past due, including loans in foreclosure – were flat at 0.9% of all loans.
“while delinquency rates remain historically low, regional pockets – such as the District of Columbia and select metro areas – are showing signs of upward movement,” said Molly Boesel, senior principal economist at Cotality. “Recent increases in unemployment coudl put further pressure on borrowers in the months ahead.”
The U.S. foreclosure rate experienced a slight uptick in June but continues to remain within a five-year range of 0.2% to 0.3%. Cotality notes this suggests borrowers are largely managing to avoid foreclosure despite ongoing financial challenges. The District of Columbia experienced the largest increase in the overall delinquency rate among all states.
“However, it is encouraging that delinquencies have not advanced to more severe stages,” Boesel added.Photo: Alexander Gray
