- Foreclosure activity rose, marking its highest level since 2019 due to VA mortgage impacts.
- U.S. delinquency rate slightly increased, while serious delinquency rates showed annual growth.
- Prepayment activity saw a significant rise, driven by home sales and refinancing.
Intercontinental Exchange, Inc. (ICE, Financial), a prominent global technology and data provider, has released its April 2025 "First Look" report on U.S. mortgage performance. The data reveals that foreclosure activity has edged higher following the expiration of the moratorium, notably for U.S. Department of Veterans Affairs (VA) mortgages. April saw 6,500 foreclosure sales, the highest in 15 months, with VA sales driving the trend to levels not seen since 2019.
In April, the national delinquency rate reached 3.22%, a slight increase of 1 basis point from the previous month, and up 4.1% year-over-year. Despite this rise, delinquencies remain below pre-pandemic figures. Serious delinquencies, or loans 90+ days overdue but not yet in foreclosure, improved seasonally but were up 14% compared to April 2024, marking six consecutive months of significant annual growth.
The "First Look" report also highlights a substantial surge in prepayment activity. The single month mortality (SMM) rate climbed to 0.71%, its highest point since October, reflecting a 19% monthly increase and a 34.9% year-over-year jump. This surge is largely attributed to increased home sales and refinance-related prepayments.
Total U.S. foreclosure pre-sale inventory marked a slight annual increase, while foreclosure starts saw a 13% year-over-year rise. Despite the increase, the overall foreclosure activity remains subdued. The ICE "First Look" offers insights into the evolving mortgage landscape, with further detailed analysis to be provided in its upcoming Mortgage Monitor report, set for release on June 2, 2025.
