The mortgage delinquency rate edged up to 3.53% in February, an increase of 1.45% compared with January and up 5.69% from February 2024, according to ICE Mortgage Technology’s First Look report.
As of the end of February there were about 1.913 million residential properties in some state of delinquency (but not in foreclosure), an increase of about 28,000 compared with the previous month and up about 131,000 compared with February 2024.
FHA mortgages accounted for 90% of the year-over-year rise in the number of delinquencies, despite making up less than 15% of all active mortgages, ICE says in the report.
In addition, 4,100 homeowners in Los Angeles are now past due as a result of the wildfires, up from 700 in January, with daily performance data suggesting that number could edge higher in March.
There were about 528,000 properties in serious delinquency (90 days or more past due but not in foreclosure) a decrease of about 12,000 compared with the previous month but up about 69,000 compared with a year earlier.
The foreclosure pre-sale inventory rate was about 0.39%, an increase of 2.16% compared with January but down about 2% compared with February 2024.
As of the end of the month, there were about 211,000 homes in the foreclosure pre-sale inventory, an increase of about 4,000 compared with the month prior but down about 1,000 compared with a year ago.
There were about 5,600 foreclosure starts in February – down about 11.4% compared with January and down about 7% compared with February 2024.
Although foreclosure starts and sales eased in February, they are nonetheless up (+34% and +7%, respectively) from the same time last year, as VA foreclosure activity resumed after a year-long moratorium.
The monthly pre-payment rate was 0.46%, down about 5% compared with the previous month but up about 8.7% compared with a year earlier.
Prepayment activity was at the lowest level in a year, on higher rates and a seasonal dip in home sales.
Photo: Alexander Grey
