The U.S. mortgage delinquency rate fell to 3.34% in February, a decrease of 1.29% compared with January and down 3.24% compared with February 2023, according to ICE Mortgage Technology’s First Look report.
While the number of borrowers one payment behind rose modestly by 10,000, those 60 days late as well as those 90 or more days past due both fell to their lowest levels in three months.
Overall, the report paints a picture of ongoing strong loan performance.
About 1.782 million residential properties were delinquent (30 days or more past due but not in foreclosure) in February, a decrease of about 21,000 compared with the previous month and down about 29,000 compared with a year ago.
About 459,000 properties were seriously delinquent (90 days or more past due but not in foreclosure), a decrease of about 11,000 compared with January and a decrease of 103,000 compared with February 2023.
The U.S. foreclosure pre-sale inventory rate was 0.4%, down 3.49% compared with the previous month and down 13.22% compared with a year earlier.
There were about 211,000 properties in the foreclosure pre-sale inventory, down about 7,000 compared with January and down about 28,000 compared with a year ago.
There were about 25,000 foreclosure starts in February, down about 27.6% compared the the previous month and down about 16% compared with a year ago.
It was the second lowest foreclosure rate in the last 12 months, ICE says.
The monthly pre-payment rate was 0.42%, an increase of 6.3% compared with January and up 20% compared with February 2023.
Prepayment activity rose to a level not seen since October, as a brief dip in rates heading into the month provided a modest increase in refinance incentive.
Photo: Alexander Grey
