The national mortgage delinquency rate in April was 3.35%, mostly unchanged from March but up 4.17% from one year earlier, according to data from Intercontinental Exchange Inc. (NYSE: ICE).
Serious delinquencies declined seasonally in April for the second month in a row but are 21% (101,000) higher than year-ago levels. Early-stage delinquencies (loans that are 30- or 60-days past due) are down 5,000 from last year’s levels.
April saw 37,000 foreclosure starts, the highest level for the month since the pre-pandemic era, and 7,900 foreclosure sales, up 22% annually. The number of loans in active foreclosure rose by 3,000 in April to 276,000, up 32% from a year ago and above the 271,000 March 2020 pre-pandemic count for a second consecutive month. However, the 0.50% foreclosure rate was slightly under the March 2020 benchmark of 0.53%.
Mortgage prepayments, measured as the single month mortality rate, fell 13% as rates moved higher.
“Mortgage performance remained broadly stable from March to April, with the overall share of past-due loans unchanged and below pre-pandemic levels,” said Andy Walden, head of mortgage and housing market research at ICE. “At the same time, the annual increase in past due loans continues to be concentrated in later-stage delinquencies, while early-stage delinquencies remain below last year’s levels, suggesting that most homeowners continue to stay on track. Cure activity has also rebounded over the past two months, though it remains below year-ago levels, making it important to monitor in the months ahead.”
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