Mortgage Delinquencies Rise Amid Foreclosure Activity Increase

The ICE First Look report shows a slight increase in national mortgage delinquency rate to 3.35% in June 2025, driven by a rise in early-stage delinquencies. FHA delinquencies reached their highest June level since 2013, while foreclosure activity increased by 10% year-over-year. The total U.S. loan delinquency rate rose to 2,042,000 properties, a 91,000 increase month-over-month.

The ICE First Look report for June 2025 reveals a slight uptick in national mortgage delinquency rates, reaching 3.35% [1]. This increase is primarily attributed to a rise in early-stage delinquencies. Notably, FHA delinquencies hit their highest June level since 2013, excluding the pandemic-era impact [1].

Foreclosure activity continues to climb, rising by 10% year-over-year, as both foreclosure starts and sales increased compared to the same period last year [1]. The total U.S. loan delinquency rate, encompassing 2,042,000 properties, saw a month-over-month increase of 91,000 [1].

The report also highlights a stabilization in serious delinquencies (SDQs), which are loans 90+ days past due but not in foreclosure, with an 8% year-over-year increase. FHA loans now account for 51% of all SDQs nationwide [1].

Prepayment activity, measured in single month mortality, dipped slightly to 0.65% due to higher interest rates, though it remains 22% higher than the same period last year [1].

The ICE First Look provides a comprehensive overview of mortgage performance, offering insights into trends and market conditions. For a more detailed analysis, the company will release its monthly Mortgage Monitor report on August 11, 2025 [1].

References:
[1] https://www.businesswire.com/news/home/20250724756691/en/ICE-First-Look-at-Mortgage-Performance-Delinquencies-Trend-Slightly-Higher-in-June-as-Foreclosure-Activity-Continues-to-Rise-off-Pandemic-Era-Lows