Mortgage Delinquencies Hold Steady, But Serious Trouble Is Brewing

Neil Caron
Aug 26
2 min read

August 26, 2025 | Housing Market Trends | Presented by ReadySetLoan™️

The Mortgage Bankers Association’s Q2 2025 report shows that national mortgage delinquencies fell slightly to 3.93%. That may look like good news, but beneath the surface, Connecticut homeowners and buyers should pay close attention: serious delinquencies—loans 90+ days overdue or already in foreclosure—are on the rise.

At ReadySetLoan™️, we break down what this means for Connecticut families navigating the housing market. While early-stage delinquencies are easing, the uptick in long-term trouble signals financial strain that could affect affordability, inventory, and future foreclosure activity in towns from Hartford to New Haven to Fairfield County.

What This Means for Connecticut Homeowners

Delinquencies trending steady: Just under 4% nationally, with Connecticut’s numbers closely aligned.
Foreclosure activity muted (for now): New foreclosure starts remain low, including in Connecticut.
Warning signs ahead: Serious delinquencies are increasing across FHA, VA, and conventional loans, raising concerns for homeowners already stretched by high property taxes and living costs.

RSL Piggy Points 🐷💡

📉 CT’s housing stability looks solid on paper, but affordability remains a challenge.
🏠 Towns like Waterbury, Bridgeport, and New Britain—already facing affordability stress—could feel the impact of rising serious delinquencies first.
⚠️ If serious delinquencies keep climbing, Connecticut could see foreclosure activity rise in 2026.

Neil’s Take 🎤

“Connecticut buyers and homeowners can’t just look at the top-line numbers. Yes, overall delinquencies are steady, but serious delinquencies are growing, and that’s where the pressure shows. It’s a reminder that affordability challenges in places like Fairfield County or shoreline towns can tip homeowners into real trouble if incomes don’t keep up.” — Neil Caron, Area Sales Manager at CMG Mortgage

The RSL Perspective

At ReadySetLoan™️, we’re watching Connecticut’s market carefully. The data shows stability now, but storm clouds are forming. For first-time buyers, that means opportunities may open as inventory shifts. For current homeowners, it’s time to manage debt wisely and stay proactive about mortgage payments.

Think of it like the final laps of a race—you want to finish strong, not stumble near the line.

ReadySetLoan™️ is here to guide Connecticut families toward smart decisions, no matter where the market turns.

✅ Wondering how these trends affect your next move in Connecticut?

Contact ReadySetLoan™️ today—your trusted resource for navigating the mortgage market.