ICE First Look: Delinquencies Improved in July

(Image courtesy of ICE; Breakout image courtesy of Max Vakhtbovycn via pexels.com)

Intercontinental Exchange, Atlanta, released its first look at July data, finding that the national delinquency rate fell 12 basis points from June to 3.37% in July.

That’s down 3.5% month-over-month, but up 4.8% from July 2023.

Delinquencies declined in all major markets with one exception–Houston, recently hit by Hurricane Beryl, saw mortgage-holders fall behind due to the conditions.

Serious delinquencies–defined as loans 90-plus days past due but not yet in foreclosure–rose 1.1% to a five-month high. They’re down 7% from July 2023, however.

The number of borrowers behind by one payment dropped by 77,000 in July, but 60-day delinquencies edged up by 11,000 borrowers.

Foreclosure starts grew by 30%. However, ICE noted that starts hit a multi-year low the month before.

Active foreclosure inventory was up by just 2,000, but that is still 34% below pre-pandemic levels.

And, 5,500 foreclosure sales were completed in July–up 3.7% from June. But, that’s down 9.6% from last year and remains well below pre-pandemic levels.

Preypayment activity hit its highest level since September 2022–0.6%.

The top five states by non-current percentage are Mississippi, at 8.02%; Louisiana, at 7.93%;  Alabama, at 5.7%; Indiana, at 5.34%; and West Virginia at 5.16%.

The bottom five states by non-current percentage are Oregon, at 2.12%; Montana, at 2.03%; Idaho, at 2.03%; Washington, at 2.02%; and Colorado at 2%.