Foreclosure Starts Rose in October, but Remain at Historically Low Levels

Intercontinental Exchange, Inc’s—better known as ICE—has again released its monthly report highlighting mortgage performance for the month of October 2023, which overall found that foreclosure starts rose by 33,000 during the month to their highest level in 18 months. 

Serious delinquencies, or mortgages 90+ days past due, fell to 447,000, hitting numbers last seen during the 2006 calendar year. 

Loans that were 30-days late also saw numbers improve, the first of such improvements in five months. Despite the improvement in delinquencies, foreclosure starts rose to 33,000 in October, hitting their highest levels in 18 months—while the number of foreclosure sales (completions) remained relatively flat. 

In addition, ICE found that active foreclosure inventory inched up 3K to 217K, but remains more than 25% below pre-pandemic levels. While foreclosure starts rose in October, near term risk remains muted, with serious delinquencies historically low and more than 70% of such loans protected from foreclosure by ongoing loss mitigation efforts. 

By the numbers as of Oct. 31, 2023: 

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.26%  

Month-over-month change: -0.99%  

Year-over-year change: -2.81% 

 

Total U.S. foreclosure pre-sale inventory rate: 0.41% 

Month-over-month change: 1.17% 

Year-over-year change: -6.13% 

  

Total U.S. foreclosure starts: 33,000 

Month-over-month change: 30.43% 

Year-over-year change: 32.85% 

  

Monthly prepayment rate (SMM): 0.43% 

Month-over-month change: -3.41% 

Year-over-year change: -12.78% 

 

Foreclosure sales: 6,400 

Month-over-month change: 0.48% 

Year-over-year change: 0.78% 

  

Number of properties that are 30 or more days past due, but not in foreclosure: 1,734,000 

Month-over-month change: -15,000 

Year-over-year change: -22,000 

  

Number of properties that are 90 or more days past due, but not in foreclosure: 447,000 

Month-over-month change: -8,000 

Year-over-year change: -135,000 

  

Number of properties in foreclosure pre-sale inventory: 217,000 

Month-over-month change: 3,000 

Year-over-year change: -11,000 

  

Number of properties that are 30 or more days past due or in foreclosure: 1,951,000 

Month-over-month change: -12,000 

Year-over-year change: -32,000 

  

Top 5 States by Non-Current Percentage 

Mississippi: 7.91%  

Louisiana: 7.46% 

Alabama: 5.60% 

Indiana: 5.11% 

Arkansas: 5.03% 

  

Bottom 5 States by Non-Current Percentage 

California: 2.14% 

Idaho: 2.14% 

Montana: 2.02% 

Washington: 2.01% 

Colorado: 1.91% 

  

Top 5 States by 90+ Days Delinquent Percentage 

Mississippi: 2.11% 

Louisiana: 1.81% 

Alabama: 1.43% 

Arkansas: 1.24% 

Georgia: 1.17% 

  

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

Alaska: -17.16% 

Rhode Island: -14.59% 

Vermont: -12.28% 

Iowa: -11.08% 

Maine: -10.14% 

  

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

Idaho: 10.84% 

Louisiana: 6.94% 

Hawaii: 6.61% 

South Dakota: 5.68% 

Delaware: 3.69% 

To read the full report, including more data, charts, and methodology, click here.