ICE First Look: Refinance Activity, Prepayments Strong in December

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ICE Mortgage Technology, Atlanta, released its “first look” at December 2025 data, finding that refinance and prepayment activity both hovered near multiyear highs.

The single month mortality rate, which tracks prepayments, rose by 8 basis points in the month to 0.91%. That’s now just 10 basis points short of the 3.5-year high reached in October.

“December’s numbers show that lower interest rates drove refinance activity and prepayments to near multiyear highs,” said Andy Walden, head of mortgage and housing market research at ICE. “At the same time, there was a divergence in delinquency trends, with early-stage delinquencies improving and late-stage delinquencies continuing to rise. Foreclosure activity also increased, driven mainly by FHA and VA loans.”

The national delinquency rate fell by 16 basis points to 3.68%, down 3 basis points from the same time last year and down 26 basis points from the December 2019 pre-pandemic benchmark.

However, late-stage delinquencies increased by 30,000, to their highest level in nearly three years.

There were 40,000 foreclosure starts, up 28% from the year before. Foreclosure inventory is up by 47,000, or up 25% year-over-year. Foreclosure sales have increased by 2,100, or 41%, from December 2024.

The number of loans in active foreclosure hit its highest level since early 2023, driven by a rise in FHA foreclosures–up 59% year-over-year and increased VA foreclosure activity.

The top five states by non-current percentage were Louisiana (8.58%), Mississippi (8.37%), Alabama (6.36%), Arkansas (6.03%) and Indiana (5.96%).

The bottom five states by non-current percentage were Idaho (2.11%), Washington (2.16%), Montana (2.26%), Colorado (2.3%) and California (2.35%).