- The U.S. national mortgage delinquency rate decreased seasonally to 3.21% in March 2025.
- Serious delinquencies saw a 14% year-over-year increase, driven by FHA loans.
- Foreclosure activity rose annually for the first time in nearly two years.
Intercontinental Exchange, Inc. (ICE, Financial) unveiled its March 2025 First Look report, highlighting a seasonal decline in the national delinquency rate by 32 basis points to 3.21%. This rate is marginally higher by 1 basis point compared to the previous year, but still significantly lower than pre-pandemic levels.
The data from ICE's extensive loan-level database indicates a year-over-year increase in serious delinquencies by 14%, amounting to an additional 60,000 cases, predominantly due to an uptick in FHA loan delinquencies.
Foreclosure inventories and sales have risen for the first time in two years, with a 27.84% year-over-year increase in foreclosure starts, totaling 33,000. This growth is partly influenced by the conclusion of a VA foreclosure moratorium.
Natural disasters have exacerbated delinquency rates in several states, with Florida, South Carolina, Georgia, and California experiencing noticeable increases. Meanwhile, prepayment activity surged by 30.4% from February, marking the highest level since November.
The report also notes a month-end count of 1,744,000 properties overdue by 30 days or more, excluding foreclosures, reflecting a decrease of 169,000 from the previous month, yet a year-over-year increase of 33,000.
Louisiana and Mississippi lead the states with the highest non-current loan percentages, while the lowest are recorded in Oregon and Montana. States like New York and North Dakota showed the most significant improvements in reducing non-current percentages over the past year.
