- The national delinquency rate slightly decreased to 3.20% in May, despite a 5.2% increase YoY.
- Foreclosure activity continues to rise annually with new foreclosure starts increasing by 16.73% YoY.
- Prepayment activity reached 0.71%, reflecting a 23.4% increase from the previous year.
ICE Mortgage Technology, a segment of Intercontinental Exchange, Inc. (ICE, Financial), reported in its May 2025 ICE First Look that U.S. mortgage delinquencies and foreclosure activities are trending higher on an annual basis, despite showing some seasonal improvements.
The national delinquency rate for loans 30 or more days past due but not in foreclosure fell by 2 basis points to 3.20% in May. However, this figure is 5.2% higher compared to the same period last year. Moreover, serious delinquencies, defined as loans overdue by 90 days or more but not yet in foreclosure, have improved seasonally for five consecutive months but remain 14% higher than last year's figures, with an additional 56,000 loans marked as seriously delinquent.
Foreclosure starts have risen by 16.73% year over year, with 28,000 new starts recorded in May. The total number of properties 30 or more days past due or in foreclosure now stands at 1.95 million, an annual increase of 125,000. Prepayment activity, driven by seasonal increases in home sales, hit 0.71%, marking the highest level since October 2024, with a significant 23.4% increase compared to May 2024.
The report indicates that disaster-related delinquencies have shown recovery, with those linked to the 2024 hurricane season decreasing by nearly 5,000 month over month, a 26% decline.
Among states, Louisiana and Mississippi lead with the highest non-current loan percentages at 7.54% and 7.34% respectively, while Washington sits at the bottom with a non-current percentage of 1.90%. Despite these selective improvements, foreclosure sales and inventory continue to experience a year-over-year rise, as noted in the ongoing resumption of VA foreclosures.
