Press Release
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September 4, 2025
US delinquency rate inches higher in second quarter of 2025
- The share of home loans 30 or more days past due in June decreased year over year but edged up quarter over quarter.
- The U.S.’s serious delinquency rate remained steady year-over-year.
- The District of Columbia showed the highest increase in the overall delinquency rate among all states.
IRVINE, Calif., September 4, 2025 – Cotality, a leading global property information, analytics, and data-enabled solutions provider, today released its latest Loan Performance Indicators, which analyzes mortgage delinquencies nationally and across major metropolitan areas. In June 2025, the number of mortgages in some kind of delinquency (30 or more days past due, including foreclosures) slightly declined to 2.9% from 3% in 2024. However, delinquencies increased from 2.8% in the first quarter of 2025.
“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. “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. 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."
The U.S. foreclosure rate ticked up slightly in June but continues to hover within its five-year range of 0.2% to 0.3%. This suggests that most borrowers are managing to avoid foreclosure despite financial pressures.
Cotality examines all delinquency stages to gain a complete view of the mortgage market and loan performance health. In June 2025, the U.S. delinquency and transition rates and their year-over-year changes were as follows:
- Early-Stage Delinquencies (30 to 59 days past due): 1.6%, down from 1.7% in June 2024.
- Adverse Delinquency (60 to 89 days past due): 0.4%, unchanged from June 2024.
- Serious Delinquency (90 days or more past due, including loans in foreclosure): 0.9%, no change from June 2024. The June 2025 serious delinquency rate of 0.9% continues its downward trend from a high of 4.3% in August 2020.
- Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.9% in June 2024.
State and Metro Takeaways
In June 2025, the District of Columbia and seven states logged year-over-year increases in their overall delinquency rate. The locations with the highest increases were the District of Columbia (up 0.6 percentage points), followed by Florida, California, Minnesota, Oregon, Utah, Wisconsin, and Georgia (all up 0.1 percentage points). All other states had changes ranging between -0.4 and 0.0 percentage points.
In June 2025, 104 out of 384 U.S. metropolitan areas posted an annual increase in their overall delinquency rate. The top areas include Farmington, New Mexico (up 1.0 percentage point); Sebring-Avon Park, Florida (up 0.7 percentage points); and Beckley, West Virginia (up 0.6 percentage points). All other year-over-year changes ranged between -1.0 and 0.5 percentage points.
In June 2025, 207 metropolitan areas posted an annual increase in their serious delinquency rate. The top areas include Asheville, NC (up 0.6 percentage points); Lawton, OK; Tampa- St. Petersburg-Clearwater, FL; Lakeland-Winter Haven, FL; Wichita Falls, TX; Punta Gorda, FL; and Augusta-Richmond County GA-SC (all up 0.5 percentage points). All other year-over-year changes ranged between -0.9 and 0.4 percentage points.
The next Cotality Loan Performance Insights Report will be released on December 4, 2025, featuring data for the third quarter of 2025. For ongoing housing trends and data, visit the Cotality Insights Blog.
Methodology
The data in the Cotality LPI report represents foreclosures and delinquency activity reported through June 2025. The data in this report accounts only for first liens against a property and does not include secondary liens. The delinquency, transition, and foreclosure rates are measured only against homes that have outstanding mortgages. Homes without mortgage “liens” are not subject to foreclosure and are, therefore, excluded from the analysis. Cotality has approximately 75% coverage of U.S. foreclosure data. This data is compiled from public records, contributory databases, and proprietary analytics, and its accuracy is dependent upon these sources.
Source: Cotality
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