ICE First Look: Mortgage Delinquencies Ease in July; New Defaults and Cure Activity Improve

August 31, 2026 |By Michael Tucker-mtucker@mba.org

(Illustration credit: Blake Wheeler Via Unsplash)

July data indicate that mortgage performance may be “finding firmer footing beneath the surface,” the new ICE First Look at mortgage delinquency, foreclosure and prepayment trends reported.

“While the national delinquency rate and serious delinquency inventory declined, the more telling trend is that new default activity has eased from last year’s levels in four of the past five months, and cure activity is improving,” said Andy Walden, head of mortgage and housing market research for ICE.

Key findings from the First Look report include:

Delinquency rate fell across all stages: The national delinquency rate fell 16 bps in July, with improvement seen at every delinquency stage. The rate remains 12 bps above last year but sits 46 bps below its July 2019 pre-pandemic benchmark.

Serious delinquencies declined for a fifth straight month: Loans 90-plus days past due but not in foreclosure are trending lower but remain 87,000 above July 2019 levels.

New default inflow has fallen annually in four of the past five months: 102,000 borrowers became 90-plus days delinquent in July, down 4% year over year. FHA loans led the decline with 13% fewer new defaults than a year ago.

Cures rose to a nine-month high: Cures from serious (90-plus day) delinquency rose 7% to 64,100, the strongest month since October 2025. Total cures across all stages climbed 12% to 464,000, the highest since March.

Foreclosure activity increased: Foreclosure starts hit 38,600, up 23% year over year. Active foreclosure inventory climbed 43% annually and completed foreclosure sales rose 14%, though volume remains at just 59% of pre-pandemic levels.

Prepayment speeds slowed for a fourth consecutive month: Single-month mortality eased 2 bps to 0.74%, the lowest reading since January, as mortgage rates remained elevated through the back half of the buying season. July’s single-month mortality remained 7 bps above year-ago levels.