According to Mortgage Bankers Association’s First quarter of 2021 National Delinquency Survey, the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 6.38% of all loans outstanding. In addition, the MBA reports that the delinquency rate was down 35 basis points from Q4 2020, and up 202 basis points from one year ago. Note the historical corollary in the chart below between the delinquency rate and unemployment rate.
“Mortgage delinquency rates continued to decrease in the first quarter of 2021, as a rebounding job market and stimulus checks helped borrowers stay current on their mortgage payments,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “Mortgage delinquencies track closely to the U.S. unemployment rate, and with unemployment dropping from last year’s spike, many households appear to be doing better.”