Cotality: U.S. Delinquency Rate Steady in Q2, but Edging Up

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Cotality, Irvine, Calif., released its latest Loan Performance Indicators, finding that as of the end of Q2, the number of mortgages in some kind of delinquency was 2.9%.

That’s up narrowly from 2.8% in Q1, but down from 3% in 2024.

“While the national delinquency rate inched up to 2.9%, it remains below December’s peak of 3.2%. Meanwhile serious delinquencies continue to move within a narrow band between 0.8% and 1%,” said Molly Boesel, senior principal economist at Cotality.

By stage, Cotality reported that early-stage delinquencies–those 30 to 59 days past due–are at 1.6%, down from 1.7% in June 2024.

Adverse delinquencies–those 60 to 89 days past due–are 0.4%, flat from June 2024.

Serious delinquencies–those 90 or more days past due and including loans in foreclosure–are 0.9%, also flat from June 2024.

The transition rate–the share of mortgages that transitioned from current to 30 days past due–was 0.6%, down from 0.9% in June 2024.

“The share of loans transitioning from current to 30 days delinquent was relatively unchanged quarter-over-quarter, and we saw a notable year-over-year decline although last year’s figure was briefly elevated,” Boesel said. “Overall, while delinquency rates remain historically low, regional pockets–such as the District of Columbia and select metro areas–are showing signs of upward movement, and recent increases in unemployment could put further pressure on borrowers in the months ahead. However, it is encouraging that delinquencies have not advanced to more severe stages.”