Mortgage Delinquency Rate Falls to 43-Year Low
Industry Update
August 12, 2022
Source: Mortgage Professional America
The delinquency rate for residential mortgage loans has fallen to its lowest level since 1979, even beating out the previous pre-pandemic survey low in 2019.
The Q2 delinquency rate nosedived to a seasonally adjusted rate of 3.64%, down 47 basis points from the previous quarter and 183 basis points below compared to the same period a year ago, according to the Mortgage Bankers Association.
By loan type, the total delinquency rate for conventional loans fell by 39 basis points to 2.64% quarter over quarter – the lowest level in the survey’s history since 2004. The FHA delinquency rate decreased 73 basis points to 8.85%, and the VA delinquency rate decreased by 64 basis points to 4.22% over the quarter.
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