According to the Mortgage Banker Association’s latest National Delinquency Survey (NDS) the overall delinquency rate for mortgage loans on one‐to‐four‐unit residential properties increased to a seasonally adjusted rate of 3.88% of all loans outstanding at the end of Q4 2023. In addition, the delinquency rate was up 26 basis points from Q3 2023 but down 8 basis points from one year ago.
“Mortgage delinquencies increased across all product types for the second consecutive quarter. Of particular note, FHA delinquencies were up 131 basis points. The resumption of student loan payments, robust personal spending, and rising balances on credit cards and other forms of consumer debt, paired with declining savings rates, are likely behind some borrowers falling behind at the end of 2023.”
“…Any weakening in employment conditions would likely lead to more borrowers falling behind on their payments in the coming quarters.”