Seasonal Improvements Lowered Mortgage Delinquencies in March, ICE Reports

Mortgage delinquencies improved seasonally in March, with cure activity strengthening and prepayment speeds rising to their highest level in nearly four years, a new report from Intercontinental Exchange said.

“March brought the seasonal improvement we typically expect to see this time of year,” Andy Walden, head of mortgage and housing market research at ICE, said in the firm’s First Look report. “Delinquencies moved lower, with improvement across the earlier stages of mortgage performance as fewer loans rolled into delinquency. Prepayment activity also climbed to its highest level in nearly four years as borrowers responded to a lower-rate environment.”

Walden noted that at the same time, serious delinquencies continue to broadly trend higher, with 154,000 more borrowers 90-plus days past due or in active foreclosure compared to the same time last year. “While overall mortgage performance remains healthy for most borrowers, the continued buildup in late-stage delinquencies and foreclosure pipelines remains worth watching,” he said.

Key takeaways from this month’s findings include:

Delinquencies fell on a seasonal basis. The national delinquency rate declined by 37 basis points in March to 3.35%, in line with the typical seasonal improvement for the month, though still 14 basis points above last year.

Prepayment activity climbed sharply: Prepayment speeds rose 24 basis points from February to 1.06%, the highest level in nearly four years and 78% above March 2025, ICE found.

Delinquency performance improved across the board: New delinquency inflow fell by 23% seasonally in March and was effectively flat from the same time last year with rolls to 60- and 90-day delinquency also improving in the month.

Cure activity rebounded: Total cures rose to 547,000, up 27% from February, with cures on 90-plus day delinquent loans also posting a strong month-over-month increase, the report said.