MIAMI— Where are homeowners are making the most progress in staying current on their mortgage payments?
As mortgage delinquency rates improve in most states across the country, WalletHub has released its latest report on the States Where Mortgage Delinquency Is Decreasing the Most. The report includes data from Q4 2024 to Q1 2025.
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, WalletHub said.
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,” WalletHub said.