Mortgage delinquency rate rises to 3.66% in September, ICE says
National Mortgage delinquencies rose to 3.66% in September.
The short version
- Active foreclosures reached the highest level since 2019.
- Prepayment speeds fell for the sixth straight month.
- Elevated rates continue to squeeze monthly budgets.
Mortgage delinquencies are ticking up across the country as higher rates linger. Intercontinental Exchange, which tracks real estate and Mortgage data, reported that the national Mortgage delinquency rate rose 12 basis points to 3.66% in September. While the number remains below pre-pandemic levels, other cracks are forming in the housing market.
Active foreclosure inventory climbed 37% from a year ago to reach its highest level since early 2019. Newer loans are feeling the strain the most, with mortgages originated in 2022 or later making up 43% of foreclosure starts in September. Meanwhile, Mortgage prepayment speeds fell for the sixth consecutive month to 0.59%, hitting their lowest level since February 2025 as elevated borrowing costs suppressed activity.
Bob Hart, president of Mortgage technology at Intercontinental Exchange, said that servicers need to reach struggling homeowners early to help keep them in their properties. For anyone managing a property portfolio or watching home values, these numbers show the slow grind of high rates finally catching up to borrowers. If your own Mortgage is fixed, you can breathe easy while the market sorts itself out.
