Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling to 3.37 percent in the second quarter of 2023. In the four quarters, the delinquency rate increased slightly, reaching 3.97 percent. That was significantly lower than the 8.22 percent during the onset of the COVID-19 pandemic in the second quarter of 2020 or the peak of 9.3 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 are eventually able to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost 13 trillion U.S. dollars in 2023. 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 26 percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under 15 percent of all subprime mortgages in 2011.

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 Q4 2024 about domestic offices, delinquencies, 1-unit structures, mortgage, family, residential, commercial, domestic, banks, depository institutions, rate, and USA.

Mortgage delinquency rates increased in all states in 2023, except in Connecticut, Delaware, Rhode Island, Vermont, West Virginia, and Wyoming. That year, the percentage of total mortgage debt that was more than 90 days delinquent was the highest in Louisiana, at over one percent. While other years New York State had the highest delinquency rates. The overall mortgage delinquency rate in the United States declined since spiking in the beginning of the pandemic, as the U.S. job market rebounded over the course of 2020 and 2021.

As of March 2024, 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 6.58 percent, about two 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.

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 Q4 2024 about farmland, domestic offices, delinquencies, real estate, commercial, domestic, loans, banks, depository institutions, rate, and USA.

From May to June 2020, the commercial mortgage delinquency rate in the hotel sector in the United States went up from two percent to 11.49 percent. The leisure and hospitality sector was one of the most affected sectors by the COVID-19 pandemic. As for the multifamily sector, the delinquency rate increased only by 0.18 percent in that time period.

As of March 2024, the 30-day delinquency rate for multifamily mortgage-backed securities (CMBS) stood notably lower than the average for commercial real estate. The share of late payments for multifamily CMBS amounted to 1.84 percent, compared to an average of 4.67 percent for all property types. Although multifamily properties had one of the lowest delinquency rates in the commercial real estate sector, industrial property had an even lower rate.

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 Consumer Loans, All Commercial Banks (DRCLACBS) from Q1 1987 to Q4 2024 about delinquencies, commercial, loans, consumer, banks, depository institutions, rate, and USA.

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 2.81 percent in the first quarter of 2020 to 8.05 percent in the second quarter of the year. In the second quarter of 2024, the delinquency rate amounted to 4.63 percent. Historically, VA mortgages have significantly lower delinquency rate than conventional mortgages.

Graph and download economic data for Delinquency Rate on Credit Card Loans, All Commercial Banks (DRCCLACBS) from Q1 1991 to Q4 2024 about credit cards, delinquencies, commercial, loans, banks, depository institutions, rate, and USA.

Graph and download economic data for Delinquency Rate on All Loans, All Commercial Banks (DRALACBN) from Q1 1985 to Q4 2024 about delinquencies, commercial, loans, banks, depository institutions, rate, and USA.

Loans to households includes both consumer debt and mortgage loans. In February 2023, the share of delinquent household loans, excluding credit card debt, in South Korea stood at 0.3 percent. The delinquency rate has remained stable since November 2022.

The mortgage delinquency rate for Federal Housing Administration (FHA) loans in the United States declined since 2020, when it peaked at 15.65 percent. In the second quarter of 2024, 10.6 percent of FHA loans were delinquent. Historically, FHA mortgages have the highest delinquency rate of all mortgage types.

Delinquency rates for credit cards picked up in 2024 in the United States, leading to the highest rates observed since 2008. This is according to a collection of one of the United States' federal banks across all commercial banks. The high delinquency rates were joined by the highest U.S. credit card charge-off rates since the Financial Crisis of 2008. Delinquency rates, or the share of credit card loans overdue a payment for more than 60 days, can sometimes lead into charge-off, or a writing off of the loan, after about six to 12 months. These figures on the share of credit card balances that are overdue developed significantly between 2021 and 2024: Delinquencies were at their lowest point in 2021 but increased to one of their highest points by 2024. This is reflected in the growing credit card debt in the United States, which reached an all-time high in 2023.

In the second quarter of 2024, the share one-to-four family residential mortgage loans entering the foreclosure process in the U.S. was 0.13 percent. Following the coronavirus pandemic outbreak in 2020, mortgage delinquency rates surged, followed by a gradual decline. Between the second quarter of 2020 and the first quarter of 2022, foreclosures remained at record low levels due to The Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Due to the impact of the COVID-19 pandemic, starting on March 13, 2020, the U.S. federal government paused payments on federal student loans, moving billions of dollars of student debt into forbearance. Federal student loans are in forbearance, meaning that no payments need to be made, and the interest rate has been set to zero percent until September 30, 2021. Because of this, student loan delinquencies also decreased, with the largest percent change experienced by accounts that are 90 to 180 days past due, with a 94 percent decrease in delinquencies.

This table contains 102 series, with data starting from 2013, and some select series starting from 2016. This table contains data described by the following dimensions (Not all combinations are available): Geography (1 item: Canada), Components (51 items: Total, funds advanced, residential mortgages, insured; Variable rate, insured; Fixed rate, insured, less than 1 year; Fixed rate, insured, from 1 to less than 3 years; ...), and Unit of measure (2 items: Dollars; Interest rate). For additional clarification on the component dimension, please visit the OSFI website for the Report on New and Existing Lending.

The delinquency rate on real estate loans at commercial banks in the United States rose slightly between the fourth quarter of 2022 and the fourth quarter of 2023. Residential real estate loans had a higher delinquency rate at 1.78 percent, compared to 1.15 percent for commercial real estate. Nevertheless, residential loans experienced a decline in the delinquency rate year-on-year, while for the commercial sector, the opposite trend was observed.

In the third quarter of 2024, roughly 2.73 percent of all consumer loans at commercial banks in the United States were delinquent. The delinquency rate on this type of credit has been rising again since 2021. Loans are delinquent when the borrower does not pay their obligations on time. One of the reasons for the delinquency rate decreasing during the first years of the COVID-19 pandemic was that the personal saving rate in the U.S. soared during that period. What is the trend in consumer credit levels in the United States? Consumer credit refers to the various types of loans and credit extended to individuals for personal use, often to fund everyday purchases or larger expenses. When credit levels rise, it often signals that consumers are more confident in their ability to manage debt and make future payments. After a period of strong growth between 2021 and early 2023, consumer credit in the United States has been growing at a slower pace. By early 2024, consumer credit levels reached over five trillion U.S. dollars. What is the main channel for acquiring consumer credit? In 2024, the leading type of consumer credit among consumers in the U.S. was credit card bills. Credit card usage in the North American country was substantial and credit card penetration was expected to reach over 68.4 percent by 2029. Car loans ranked next as a common source of consumer credit, while other types of debt, such as medical bills, home equity lines of credit, and personal educational loans, had lower percentages.