US Mortgage Foreclosure Rate Hits 0.4%, a 6-Year High as Delinquencies Reach 3%
Updated
Updated · USA TODAY · Jun 9
US Mortgage Foreclosure Rate Hits 0.4%, a 6-Year High as Delinquencies Reach 3%
3 articles · Updated · USA TODAY · Jun 9
Summary
Cotality data for March showed 3% of US mortgages were at least 30 days past due, up 0.2 percentage point from a year earlier, while homes in active foreclosure rose to 0.4%—the highest share in six years.
Recent buyers are driving much of the stress, with economists pointing to high home prices, elevated interest rates and borrowers who expected to refinance quickly but got stuck.
Distress is concentrated in riskier loan segments such as FHA- and VA-backed mortgages, while hurricanes in Georgia and South Carolina and surging insurance costs in California and Florida are adding pressure.
Housing advocates say 2025 federal funding cuts have weakened counseling and consumer-protection guardrails just as more owners fall behind, leaving fewer places for struggling borrowers to seek help.
Economists say levels remain far below the 2008-era crisis, but the rise in recent-buyer distress is increasingly viewed as an early warning for the broader housing market.
As federal housing support disappears, are states prepared for a new foreclosure crisis?
Is the 2026 housing market a healthy correction or the start of a broader collapse?
Why are home prices falling in Florida but soaring across the Midwest?
2026 US Mortgage Market Under Pressure: Delinquency and Foreclosure Rates Climb Amid Affordability Crisis
Overview
As of March 2026, the US mortgage market shows a mixed picture: while the national delinquency rate remains stable and below pre-pandemic levels, there is a growing concern about rising serious delinquencies and an increasing foreclosure inventory. Most homeowners are still keeping up with payments, but the annual rise in past-due loans is mainly in later-stage delinquencies, pointing to a potential buildup in the foreclosure pipeline. This trend suggests that, despite overall stability, more borrowers are struggling with long-term payment issues, which could lead to more foreclosures in the near future.