The national mortgage delinquency rate declined by 37 basis points (bps) in March to 3.35%, although it was 14 bps above last year’s level, according to data from Intercontinental Exchange Inc. (NYSE: ICE).
Prepayment speeds (SMM) were up by 24 bps from February to 1.06%, the highest level in nearly four years and 78% above the level set in March 2025. At the same time, the new delinquency inflow fell by 23% seasonally in March and was effectively flat from the same time last year.
Total cures rose to 547,000, up 27% from February, with cures on 90-plus day delinquent loans also posting a strong month-over-month increase. And the number of loans 30-plus days past due or in foreclosure fell by 194,000 in March to 2.12 million, although they were also 8.2% above year-ago levels.
Serious delinquencies and foreclosure inventories continued to rise, with 154,000 more borrowers who were 90 or more days past due or in active foreclosure, compared to the same time last year, with foreclosure starts (+17%) and sales (+21%) up from one year ago. And the foreclosure inventory rose to 273,000 in March, up from 213,000 a year ago, marking the largest such volume since February 2020.
“March brought the seasonal improvement we typically expect to see this time of year,” said Andy Walden, head of mortgage and housing market research at ICE. “Delinquencies moved lower, with improvement across the earlier stages of mortgage performance as fewer loans rolled into delinquency. Prepayment activity also climbed to its highest level in nearly four years as borrowers responded to a lower-rate environment. At the same time, serious delinquencies continue to broadly trend higher, with 154,000 more borrowers 90-plus days past due or in active foreclosure, compared to the same time last year. While overall mortgage performance remains healthy for most borrowers, the continued buildup in late-stage delinquencies and foreclosure pipelines remains worth watching.”
0 Comments