ICE: Delinquencies, Foreclosures Continued to Decrease in May 

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The U.S. mortgage delinquency rate continued to fall in May to 3.04% – a decrease of 1.55% compared with April and a decrease of 1.94% compared with May 2023, according to ICE Mortgage Technology’s First Look report.

As of the end of the month, there were roughly 1.634 million properties 30 days or more past due but not in foreclosure, a decrease of about 24,000 compared with the previous month and down about 5,000 from a year earlier.

There were about 410,000 serious delinquencies (90 days or more past due and not in foreclosure), down about 8,000 compared with April, and down about 74,000 compared with May 2023.

Sixty-day delinquencies edged up by about 4,000 compared with April, ICE says.

While inflow of borrowers newly 30 days late dropped to a one-year low, those rolling to later stages of delinquency edged higher from April and fewer delinquent loans cured to current status, ICE also notes.

The foreclosure presale inventory rate stood at 0.36% as of the end of the month. There were about 191,000 homes in the foreclosure pre-sale inventory – down about 7,000 compared with the previous month and down about 38,000 compared with a year ago.

There were 24,000 foreclosure starts in May – a decrease of 6.47% compared with April and down 4.77% compared with May 2023.

The low foreclosure rate is keeping active foreclosure inventory at the lowest level since pandemic-era moratoria were lifted in January 2022, ICE says.

The total number of mortgage-holders currently in active foreclosure remains 32% below (-92,000) pre-pandemic levels.

Despite rate-related headwinds, the monthly pre-payment rate increased 10.45% compared with April and was up 6.6% compared with May 2023.

Pushing prepayments to their highest level since September 2022 was a seasonal rise in home sales and slightly improved refi volumes.

Photo: Mohamed Nohassi

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