In the second quarter of 2024, delinquent and seriously delinquent mortgage accounts had nearly returned to pre-pandemic levels. Despite that, the portion of homeowners at real risk of losing their homes due to the inability to make payments remains historically low.
“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,” MBA VP of Industry Analysis Marina Walsh said in an August statement.
In the wake of the 2007-2010 housing market crash and the spike in unemployment that followed, millions of Americans lost their homes. Mortgages in serious threat of foreclosure peaked at nearly 9% of all balances, according to Fed data. Today, seriously delinquent balances sit at just below 1%, a share that’s hardly changed since their historic low point seen in the depths of the COVID-19 pandemic thanks to temporary mortgage forbearance and homeowner support programs.
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