ICE: 2024 Saw Softest Home Price Growth in Years; Mortgage Delinquencies Trending Higher

(Illustration courtesy of Intercontinental Exchange)

Home prices ended the year on an up note, but 2024 was the softest year for home price growth in more than a decade, according to Intercontinental Exchange.

Overall, for-sale inventory enters the year as a bright spot for a market that’s been dealing with deep deficits in recent years, the February ICE Mortgage Monitor report said. Inventory levels grew by 22% in 2024, with a quarter of markets, largely in the southern U.S., now back to or above pre-pandemic levels.

“At the current rate of improvement, another 15% of markets, primarily in the South and West, would be on pace to see inventory levels normalize this year,” Intercontinental Exchange Head of Mortgage and Housing Market Research Andy Walden said. “At the same time, Midwest and Northeast markets continue to face steep deficits and a slower path to recovery. Given the disparity of inventories across the country it is no surprise to see 18 of the 20 strongest housing markets from a price growth perspective located in inventory-starved portions of the Midwest and Northeast.”

From a mortgage performance perspective, the market enters 2025 on a mixed note, the report said. Overall, the national mortgage delinquency rate remains 22 basis points below pre-pandemic levels, but mortgage performance is a “tale of two markets.” Performance remains strong among GSE and portfolio-held loans, with delinquencies among portfolio-held mortgages down 11 basis points from last year and 1.1 percentage points from the beginning of 2020. FHA delinquencies, on the other hand, have been sharply rising and now sit 2.5 percentage points above pre-pandemic levels. VA delinquencies have also been rising, up 80 basis points in 2024 and 83 basis points from early 2020.

“Despite gradually rising delinquencies in recent months, the total number of foreclosures started and completed (sales) in 2024 hit record lows–outside of the COVID-19 moratoria–due to the prevalence of forbearance and other loss mitigation efforts, along with the strong equity footing of mortgage holders in today’s market,” the report said. “Low foreclosures aside, mortgage performance is likely to be a focal point in 2025.”