Mortgage Delinquencies Rise as Unemployment Rate Increases

The rate of mortgage delinquencies increased in the second quarter of this year, with loans at default for 60 days or less accounting for the annual surge, according to the Mortgage Bankers Association (MBA). Delinquency rates for 1- to 4-unit residential properties rose to 3.97 percent of all outstanding mortgages by the end of the second quarter, said an Aug. 15 press release. The rate of delinquency was up three basis points from the first quarter and 60 points from second quarter 2023. “While delinquencies are still low by historical standards, the recent increase corresponds with a rising unemployment rate, which has historically been closely correlated with mortgage performance,” said Marina Walsh, CMB, MBA’s vice president of industry analysis....