The U.S. mortgage delinquency rate declined in July, though foreclosure activity continued to rise compared with a year earlier, according to data from Intercontinental Exchange’s loan-level database.
The national delinquency rate—loans 30 days or more past due but not in foreclosure—fell to 3.39% in July from 3.55% in June, a decrease of 4.56%. The rate remained 3.69% higher than July 2025, reflecting persistent stress in the housing market relative to the prior year.
Serious delinquencies—loans 90 days or more past due and not in foreclosure—declined for the fifth consecutive month, totaling 563,000 properties. This represented a drop of 7,000 from June but an increase of 97,000 from a year earlier. New defaults also fell, with 102,000 borrowers entering 90-plus day delinquency status, a 4% decrease from July 2025. FHA loans saw a 13% reduction in new defaults year over year.
Foreclosure activity showed a contrasting trend, with starts rising 22.84% year over year to 40,000 in July. The active foreclosure inventory expanded by 42% annually to 296,000 properties, while completed foreclosure sales totaled 7,900, up 14.18% from the prior year. Despite the increase, foreclosure volumes remain 59% below pre-pandemic levels.
Prepayment speeds continued to slow, marking the fourth consecutive monthly decline. Single-month mortality eased to 0.74%, the lowest reading since January, though it remained 11.04% above year-ago levels.
State-level data highlighted significant regional disparities. Louisiana reported the highest non-current mortgage rate at 8.20%, while Idaho recorded the lowest at 1.93%. The figures underscore uneven recovery patterns across the country, with some states experiencing greater financial strain than others.
The data is derived from ICE’s loan-level mortgage asset database, based on a press release issued Tuesday.
