The delinquency for mortgage loans on small multi-unit residential properties increased to a seasonally adjusted rate of 4.04% of all loans outstanding at the end of the first quarter, according to the Mortgage Bankers Association (MBA).

The MBA’s national delinquency survey reports that the delinquency rate for mortgage loans on one-to-four-unit residential properties was up 6 basis points from the fourth quarter of 2024 and up 10 basis points from a year ago.

The percentage of loans that started the foreclosure process in the first quarter rose by 5 basis points from the previous quarter to 0.2%. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure.

Marina Walsh, MBA’s vice president of industry analysis, said there were mixed results for mortgage performance in the first quarter of 2025 compared to the end of 2024. Delinquencies on conventional loans increased slightly, while mortgage delinquencies on Federal Housing Administration and Department of Veterans Affairs (VA) loans declined.

“Foreclosure inventories increased across all three loan types, and particularly for VA loans,” Walsh said. “Despite certain segments of borrowers having difficulty making their mortgage payments, the overall national delinquency and foreclosure rates remain below historical averages for now.”