Graph and download economic data for Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks (DRSFRMACBS) from Q1 1991 to Q1 2025 about domestic offices, delinquencies, 1-unit structures, mortgage, family, residential, commercial, domestic, banks, depository institutions, rate, and USA.

The Global Financial Crisis of 2008-09 was a period of severe macroeconomic instability for the United States and the global economy more generally. The crisis was precipitated by the collapse of a number of financial institutions who were deeply involved in the U.S. mortgage market and associated credit markets. Beginning in the Summer of 2007, a number of banks began to report issues with increasing mortgage delinquencies and the problem of not being able to accurately price derivatives contracts which were based on bundles of these U.S. residential mortgages. By the end of 2008, U.S. financial institutions had begun to fail due to their exposure to the housing market, leading to one of the deepest recessions in the history of the United States and to extensive government bailouts of the financial sector.

Subprime and the collapse of the U.S. mortgage market

The early 2000s had seen explosive growth in the U.S. mortgage market, as credit became cheaper due to the Federal Reserve's decision to lower interest rates in the aftermath of the 2001 'Dot Com' Crash, as well as because of the increasing globalization of financial flows which directed funds into U.S. financial markets. Lower mortgage rates gave incentive to financial institutions to begin lending to riskier borrowers, using so-called 'subprime' loans. These were loans to borrowers with poor credit scores, who would not have met the requirements for a conventional mortgage loan. In order to hedge against the risk of these riskier loans, financial institutions began to use complex financial instruments known as derivatives, which bundled mortgage loans together and allowed the risk of default to be sold on to willing investors. This practice was supposed to remove the risk from these loans, by effectively allowing credit institutions to buy insurance against delinquencies. Due to the fraudulent practices of credit ratings agencies, however, the price of these contacts did not reflect the real risk of the loans involved. As the reality of the inability of the borrowers to repay began to kick in during 2007, the financial markets which traded these derivatives came under increasing stress and eventually led to a 'sudden stop' in trading and credit intermediation during 2008.

Market Panic and The Great Recession

As borrowers failed to make repayments, this had a knock-on effect among financial institutions who were highly leveraged with financial instruments based on the mortgage market. Lehman Brothers, one of the world's largest investment banks, failed on September 15th 2008, causing widespread panic in financial markets. Due to the fear of an unprecedented collapse in the financial sector which would have untold consequences for the wider economy, the U.S. government and central bank, The Fed, intervened the following day to bailout the United States' largest insurance company, AIG, and to backstop financial markets. The crisis prompted a deep recession, known colloquially as The Great Recession, drawing parallels between this period and The Great Depression. The collapse of credit intermediation in the economy lead to further issues in the real economy, as business were increasingly unable to pay back loans and were forced to lay off staff, driving unemployment to a high of almost 10 percent in 2010. While there has been criticism of the U.S. government's actions to bailout the financial institutions involved, the actions of the government and the Fed are seen by many as having prevented the crisis from spiraling into a depression of the magnitude of The Great Depression.

Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling below *** percent in the second quarter of 2023. In the second half of 2023, the delinquency rate picked up, but remained stable throughout 2024. In the first quarter of 2025, **** percent of mortgage loans were delinquent. That was significantly lower than the **** percent during the onset of the COVID-19 pandemic in 2020 or the peak of *** percent during the subprime mortgage crisis of 2007-2010. What does the mortgage delinquency rate tell us? The mortgage delinquency rate is the share of the total number of mortgaged home loans in the U.S. where payment is overdue by 30 days or more. Many borrowers eventually manage to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost ** trillion U.S. dollars in 2024. Not all mortgage loans are made equal ‘Subprime’ loans, being targeted at high-risk borrowers and generally coupled with higher interest rates to compensate for the risk. These loans have far higher delinquency rates than conventional loans. Defaulting on such loans was one of the triggers for the 2007-2010 financial crisis, with subprime delinquency rates reaching almost ** percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under ** percent of all subprime mortgages in 2011.

Federal Housing Administration (FHA) loans had the highest delinquency rate in the United States in 2024. As of the second quarter of the year, **** percent of one-to-four family housing mortgage loans were ** days or more delinquent. This percentage was lower for conventional loans and Veterans Administration loans. Despite a slight increase, the delinquency rate for all mortgages was one of the lowest on record.

United States - Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks was 1.82% in October of 2024, according to the United States Federal Reserve. Historically, United States - Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks reached a record high of 11.36 in January of 2010 and a record low of 1.40 in January of 2005. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks - last updated from the United States Federal Reserve on July of 2025.

The S&P/Experian first mortgage default index stood at **** as of May 2022, meaning that based on data from the most recent three months, the annualized share of default first mortgages was **** percent. This was lower than the default rate index of second mortgages and home equity loans. Although the index rose in 2022, it remained below the levels observed in the first two months of 2020 when it amounted to approximately *** percent.

In Hong Kong's banking sector, the default rate on mortgages is very low. In 2024, the delinquency ratio of residential mortgage lending by authorized banking institutions stood at ****. The value of issued mortgages exceeded **** trillion Hong Kong dollars.

The S&P/Experian second mortgage default index stood at **** as of May 2022, meaning that based on data from the most recent three months, the annualized share of default second mortgages and home equity loans was **** percent. This was higher than the first mortgage default rate for the same period. Although the index rose in 2022, it remained below the levels observed in December 2017, when it spiked at **** percent.

The mortgage delinquency rate for Veterans Administration (VA) loans in the United States has decreased since 2020. Under the effects of the coronavirus pandemic, the mortgage delinquency rate for VA loans spiked from **** percent in the first quarter of 2020 to **** percent in the second quarter of the year. In the second quarter of 2024, the delinquency rate amounted to **** percent. Historically, VA mortgages have significantly lower delinquency rate than conventional mortgages.

Since the start of the coronavirus (COVID-19) crisis, many businesses have had to close their doors or have struggled to pay rent. As a result, commercial property landlords suffered loss of income, leading to failure to repay mortgage loans. In 2020, the default rate of commercial real estate mortgages rose to 4.6 percent, which is the highest value observed since the global financial crisis.

Mortgage delinquency rates increased in most states in 2024. That year, the percentage of total mortgage debt that was more than ** days delinquent was the highest in Louisiana, at **** percent. Conversely, Wisconsin and Montana had the lowest delinquency rates, at under **** percent. The overall mortgage delinquency rate in the United States declined since spiking at the beginning of the pandemic, as the U.S. job market rebounded over the course of 2020 and 2021.

Graph and download economic data for Mortgage Delinquency Rates for United States (Q09084USQ507NNBR) from Q3 1953 to Q2 1963 about delinquencies, mortgage, rate, and USA.

Graph and download economic data for Delinquency Rate on Commercial Real Estate Loans (Excluding Farmland), Booked in Domestic Offices, All Commercial Banks (DRCRELEXFACBS) from Q1 1991 to Q1 2025 about farmland, domestic offices, delinquencies, real estate, commercial, domestic, loans, banks, depository institutions, rate, and USA.

As of March 2025, the 30-day delinquency rate for commercial mortgage-backed securities (CMBS) varied per property type. The share of late payments for office CMBS was the highest at over **** percent, about ***** percentage points higher than the average for all asset classes. A 30-day delinquency refers to payments that are one month late, regardless of how many days the month has. Commercial mortgage-backed securities are fixed-income investment products which are backed by mortgages on commercial property.

The Latin American home mortgage finance market, valued at approximately $XX million in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 3.00% from 2025 to 2033. This growth is fueled by several key drivers, including increasing urbanization, rising disposable incomes across various socioeconomic segments, and government initiatives aimed at boosting homeownership rates. Furthermore, the expansion of the formal financial sector and the availability of innovative mortgage products, such as adjustable-rate mortgages catering to diverse financial profiles, contribute to market expansion. However, economic volatility in certain Latin American nations and fluctuating interest rates pose significant challenges. The market is segmented by mortgage type (fixed-rate and adjustable-rate), loan tenure (ranging from under 5 years to over 25 years), and geography, with Brazil, Chile, Colombia, and Peru representing significant market shares. Competition is intense, with major players including Caixa Economica Federal, Banco do Brasil, Itaú, Bradesco, Santander, and others vying for market dominance. The market's future trajectory hinges on managing economic instability, maintaining affordable interest rates, and continuing to improve access to credit for a broader range of borrowers. The segment analysis reveals that fixed-rate mortgages currently dominate the market, though adjustable-rate mortgages are gaining traction due to their flexibility. Longer-tenure mortgages (11-24 years and 25-30 years) are increasingly popular as borrowers seek more manageable monthly payments. Geographically, Brazil holds the largest market share, reflecting its substantial population and relatively developed financial sector. However, Chile, Colombia, and Peru are showing promising growth potential, driven by improving economic conditions and increased government support for housing initiatives. The Rest of Latin America segment offers considerable untapped potential. Continued economic development and infrastructure improvements in these regions will be instrumental in further propelling market growth in the coming years. A focus on financial literacy and responsible lending practices will be essential for sustainable market development and to mitigate potential risks associated with rapid expansion. Recent developments include: In August 2022, Two new mortgage fintech start-ups emerged in Latin America: Toperty launched in Colombia and Saturn5 is about to launch in Mexico. Toperty offers to purchase a customer's new house outright and provides a payment schedule that allows the customer to purchase the house while renting it from the business. Saturn5 wants to give its clients the skills and resources they need to buy a house on their own., In August 2022, During a conference call on August 5, Brazilian lender Banco Bradesco SA startled analysts by reporting an increase in default rates in the second quarter of 2022. The average 90-day nonperforming loan ratio for Bradesco, the second-largest private bank in Latin America, increased by 30 basis points. Delinquency in the overall portfolio increased to 3.5% from 2.5% and 3.2%, respectively, in the first quarter.. Notable trends are: Increase in Economic Growth and GDP per capita.

United States - Delinquency Rate on All Loans, All Commercial Banks was 1.56% in January of 2025, according to the United States Federal Reserve. Historically, United States - Delinquency Rate on All Loans, All Commercial Banks reached a record high of 7.40 in January of 2010 and a record low of 1.19 in October of 2022. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Delinquency Rate on All Loans, All Commercial Banks - last updated from the United States Federal Reserve on July of 2025.

Homeowners in financial distress can use bankruptcy to avoid defaulting on their mortgages, since filing loosens their budget constraints. But the 2005 bankruptcy reform made bankruptcy less favorable to homeowners and therefore caused mortgage defaults to rise. We test this relationship and find that the reform caused prime and subprime mortgage default rates to rise by 23% and 14%, respectively. Default rates rose even more for homeowners who were particularly negatively affected by the reform. We calculate that bankruptcy reform caused mortgage default rates to rise by one percentage point even before the start of the financial crisis. (JEL D14, G01, G21, K35)

In 2023, the delinquency rates of all types of mortgage lenders in Canada increased. As of the fourth quarter of the year, approximately 1.05 percent of loans in the loan portfolios of mortgage investment entities (MIEs) were classified as delinquent, which was a decrease from the 0.78 percent delinquency rate a year ago. A loan is reported by lenders as being delinquent after 270 days of late payments.

Graph and download economic data for Delinquency Rate on All Loans, All Commercial Banks (DRALACBN) from Q1 1985 to Q1 2025 about delinquencies, commercial, loans, banks, depository institutions, rate, and USA.

Abstract (en): Texas is the only US state that limits home equity borrowing to 80 percent of home value. This paper exploits this policy discontinuity around Texas' interstate borders and uses a multidimensional regression discontinuity design framework to find that limits on home equity borrowing in Texas lowered the likelihood of mortgage default by about 1.5 percentage points for all mortgages and 4–5 percentage points for non-prime mortgages. Estimated non-prime mortgage default hazards within 25 to 100 miles on either side of the Texas border are about 20 percent smaller when crossing into Texas.