Delinquencies Held Steady in May but Continue to Trend Higher on an Annual Basis

ICE Mortgage Technology, neutral provider of a robust end-to-end mortgage platform and part of Intercontinental Exchange, Inc. (NYSE: ICE), today released its May 2025 ICE First Look, which shows that delinquencies and foreclosure activity continues to trend slightly higher on an annual basis despite some seasonal and disaster recovery related improvement.

The ICE First Look reports on month-end delinquency, foreclosure and prepayment statistics sourced from its loan-level database, which covers a majority of the U.S. mortgage market. Key takeaways from this month’s findings include:

• The national delinquency rate ticked down 2 basis points (bps) to 3.20% in May, though it is up 5.2% (16 bps) year over year (YoY).
• Serious delinquencies – loans 90+ days past due but not in foreclosure – improved seasonally for the fifth consecutive month but are still up 56K (14%) from the same time last year.
• Disaster-related delinquencies also improved, with those related to the 2024 hurricane season falling by nearly 5K (26%) month over month (MoM) and Los Angeles wildfire-related delinquencies falling by a more modest 9% MoM.
• For the third consecutive month, foreclosure starts, active foreclosures and foreclosure sales rose annually as VA foreclosure resumptions continue to make their way through the pipeline.
• Prepayment activity, as measured by single month mortality, inched up to 0.71%, the highest level since October 2024, driven by a seasonal rise in home sale-related prepayments. Prepayments were up 23.4% YoY.

Data as of May 31, 2025
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.20%
Month-over-month change: -0.52%
Year-over-year change: 5.20%

Total U.S. foreclosure pre-sale inventory rate: 0.38%
Month-over-month change: -1.46%
Year-over-year change: 6.29%

Total U.S. foreclosure starts: 28,000
Month-over-month change -3.35%
Year-over-year change: 16.73%

Monthly prepayment rate (SMM): 0.71%
Month-over-month change: 1.00%
Year-over-year change: 23.38%

Foreclosure sales: 7,000
Month-over-month change: 8,15%
Year-over-year change: 11,37%

Number of properties that are 30 or more days past due, but not in foreclosure: ​ 1,744,000
Month-over-month change: -8,000
Year-over-year change: 110,000

Number of properties that are 90 or more days past due, but not in foreclosure: 466,000
Month-over-month change: -10,000
Year-over-year change: 56,000

Number of properties in foreclosure pre-sale inventory: 206,000
Month-over-month change: -3,000
Year-over-year change: 15,000