Falling behind on a mortgage can have a serious impact on your credit score, with late payments remaining on your credit report for up to seven years. However, since payments are only marked as delinquent after being 30 days past due, catching up quickly can help minimize the damage.
While some level of mortgage delinquency is inevitable, a statewide decline in delinquency rates can be a sign of economic resilience and improving financial stability. To highlight the states where homeowners are making the most progress in staying current on their mortgages, WalletHub analyzed proprietary user data from Q4 2024 to Q1 2025.
Chip Lupo, WalletHub Analyst
Main Findings
States Where Mortgage Delinquency Is Decreasing the Most
| Overall Rank* | State | Share of Average No. Mortgage Loans Delinquent in Q1 2025 | Change in Average No. Mortgage Loans Delinquent (Q1 2025 vs. Q4 2024) |
|---|---|---|---|
| 1 | Montana | 5.01% | -17.02% |
| 2 | Wyoming | 6.15% | -15.83% |
| 3 | Vermont | 7.33% | -13.63% |
| 4 | North Dakota | 4.63% | -12.45% |
| 5 | Arizona | 6.50% | -10.81% |
| 6 | Oklahoma | 9.83% | -9.90% |
| 7 | Delaware | 8.19% | -9.86% |
| 8 | Maine | 6.91% | -9.62% |
| 9 | Indiana | 9.06% | -9.58% |
| 10 | South Dakota | 8.36% | -9.47% |
| 11 | Arkansas | 10.76% | -9.41% |
| 12 | Alabama | 10.99% | -9.39% |
| 13 | Kansas | 7.45% | -8.66% |
| 14 | Utah | 5.61% | -8.56% |
| 15 | Tennessee | 9.33% | -8.21% |
| 16 | Kentucky | 10.20% | -7.84% |
| 17 | Oregon | 5.42% | -7.76% |
| 18 | Nebraska | 7.64% | -7.68% |
| 19 | Virginia | 7.22% | -7.66% |
| 20 | Washington | 5.21% | -7.31% |
| 21 | California | 4.93% | -7.29% |
| 22 | Missouri | 7.93% | -7.13% |
| 23 | North Carolina | 8.50% | -7.07% |
| 24 | Mississippi | 17.17% | -6.61% |
| 25 | Georgia | 8.32% | -6.41% |
| 26 | Florida | 7.06% | -6.41% |
| 27 | New Hampshire | 6.23% | -6.35% |
| 28 | Wisconsin | 5.48% | -6.04% |
| 29 | Texas | 9.49% | -6.01% |
| 30 | South Carolina | 10.35% | -4.80% |
| 31 | Minnesota | 7.55% | -4.68% |
| 32 | New Jersey | 7.67% | -4.57% |
| 33 | Michigan | 7.80% | -3.82% |
| 34 | Pennsylvania | 8.56% | -3.45% |
| 35 | West Virginia | 11.65% | -3.32% |
| 36 | Massachusetts | 6.46% | -2.82% |
| 37 | Idaho | 6.78% | -2.67% |
| 38 | Ohio | 6.31% | -2.63% |
| 39 | Louisiana | 14.77% | -2.60% |
| 40 | Illinois | 6.89% | -1.80% |
| 41 | Connecticut | 8.22% | -1.55% |
| 42 | Iowa | 4.26% | -1.37% |
| 43 | Nevada | 6.12% | -1.37% |
| 44 | Colorado | 5.27% | 0.13% |
| 45 | Maryland | 8.25% | 0.82% |
| 46 | New York | 7.16% | 0.95% |
| 47 | Hawaii | 5.64% | 2.86% |
| 48 | New Mexico | 10.35% | 2.97% |
| 49 | Alaska | 7.56% | 7.89% |
| 50 | Rhode Island | 6.86% | 8.91% |
Note: *No. 1 = Largest Decrease
In-Depth Look at the Top States
Montana
Montana is the state where mortgage delinquency is decreasing the most. In Q1 2025, the number of delinquent mortgages in the state dropped by over 17% compared to Q4 2024, marking the largest decline in the country. Thanks to this significant improvement, Montana now boasts one of the lowest delinquency rates in the country slightly over 5%.
Overall, Montana has a mid-tier state economy and some of the lowest tax rates in the country. These factors may influence how Montana residents manage their mortgage payments.
Wyoming
Mortgage delinquency in Wyoming decreased by nearly 16% between Q4 2024 and Q1 2025, which ranks second nationally. With a delinquency rate of 6.2%, the state holds the 12th-lowest rate overall, an indicator to its relatively strong mortgage stability.
Wyoming also has a very low share of people who have been allowed to delay payments on their debts due to financial difficulty. This suggests a strong and resilient mortgage market in the state.
Vermont
Vermont ranks third among the states where mortgage debt delinquency is decreasing the most. Between Q4 2024 and Q1 2025, Vermont saw a nearly 14% decrease in delinquent mortgages, the third-largest reduction across the country. With a delinquency rate of 7.3%, Vermont holds the 24th-lowest delinquency rate indicating a fairly average mortgage health compared to other states.
Interestingly, in addition to having a big decrease in mortgage delinquency recently, Vermont also maintains a relatively low share of people with credit accounts in distress, a positive sign of financial stability in the state.
Methodology
To determine the states most delinquent on mortgage loans, we analyzed WalletHub’s proprietary user data on consumer mortgage delinquency rates between Q4 2024 and Q1 2025.
Sources: Data used to create this ranking were collected as of April 24, 2025 from WalletHub database.
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