In the first quarter of 2025, mortgage performance displayed mixed trends, with delinquencies rising for conventional loans but declining for FHA and VA loans. Foreclosure rates also increased, particularly for VA loans, which reported their highest level of foreclosure activity since 2019, attributed to the end of a temporary moratorium. Despite these challenges, national rates of delinquency and foreclosure remain below historical averages. Analysts warn that worsening economic conditions could lead to further increases in these rates without suitable loan workout options available.
The overall national delinquency and foreclosure rates remain below historical averages for now, despite certain segments of borrowers facing difficulties in making mortgage payments.
The percentage of VA loans in foreclosure rose to 0.84%, the highest since Q4 2019, marking the largest quarterly change in this rate since the MBA's survey inception in 1979.
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