Snapshot: Mortgage Delinquencies Rise, Foreclosures Fall

The calendar year 2023 ended on a Sunday, which played a part in affecting payment processing, meaning the national delinquency rate hit 3.57%, up 19 basis points from November. 

This information comes to us through the ICE Mortgage Technology’s First Look at mortgage performance for the month, a month-end mortgage performance statistics report derived from its loan-level database representing the majority of the national mortgage market. 

According to ICE, delinquencies were up moderately across the board, as inflows and rolls to later stages of delinquency rose, while cures from both early- and late-stage delinquency improved. Serious delinquencies (90+ days past due) rose to 475K, but were still 19% (-108K) below where they were they ended December 2022 

The 24,000-some foreclosures marked an 18-month low with total activity foreclosures at their lowest level since March 2022, but is still 25% below pre-pandemic levels. 

Similarly, the 5,400 foreclosure completions were down 17.2% from November, the largest drop since February 2022, shortly after the end of COVID-era moratoria. 

By the numbers: 

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.57% 

Month-over-month change: 5.55% 

Year-over-year change: 2.65% 

  

Total U.S. foreclosure pre-sale inventory rate: 0.40% 

Month-over-month change: -2.41% 

Year-over-year change: -10.22% 

  

Total U.S. foreclosure starts: 24,000 

Month-over-month change -17.93% 

Year-over-year change: -15.46% 

  

Monthly prepayment rate (SMM): 0.39% 

Month-over-month change: 4.89% 

Year-over-year change: -4.68% 

  

Foreclosure sales: 5,400 

Month-over-month change: -17.22% 

Year-over-year change: -11.54% 

  

Number of properties that are 30 or more days past due, but not in foreclosure: 1,908,000 

Month-over-month change: 105,000 

Year-over-year change: 81,000 

  

Number of properties that are 90 or more days past due, but not in foreclosure: 475,000 

Month-over-month change: 15,000 

Year-over-year change: -108,000 

  

Number of properties in foreclosure pre-sale inventory: 212,000 

Month-over-month change: -5,000 

Year-over-year change: -20,000 

  

Number of properties that are 30 or more days past due or in foreclosure: 2,120,000 

Month-over-month change: 100,000 

Year-over-year change: 61,000 

  

Top 5 States by Non-Current Percentage 

Mississippi: 8.37% 

Louisiana: 8.17% 

Alabama: 6.07% 

West Virginia: 5.54% 

Indiana: 5.54% 

  

Bottom 5 States by Non-Current Percentage 

California: 2.31% 

Idaho: 2.26% 

Montana: 2.21% 

Washington: 2.17% 

Colorado: 2.09% 

  

Top 5 States by 90+ Days Delinquent Percentage 

Mississippi: 2.19% 

Louisiana: 1.97% 

Alabama: 1.51% 

Arkansas: 1.35% 

Georgia: 1.24% 

  

Top 5 States by 12-Month Change in Non-Current Percentage 

North Dakota: -8.88% 

Alaska: -8.43% 

Rhode Island: -8.31% 

Vermont: -7.34% 

Wyoming: -5.80% 

  

Bottom 5 States by 12-Month Change in Non-Current Percentage 

Idaho: 11.46% 

Louisiana: 9.80% 

Arizona: 8.31% 

South Dakota: 8.26% 

Texas: 7.29%