Mortgage delinquencies increased in June, rising 14.5% compared with May to 3.49% of all loans, according to ICE Mortgage Technology’s First Look report.
Year-over-year, mortgage delinquencies were up 11.7%.
However, the increase needs to be viewed in perspective: Mortgage delinquencies were at a near-record low in May and have been close to historic lows almost every month since the start of the pandemic in 2020.
In addition, the month of June ended on a Sunday: As ICE points out in its report, Sunday month-ends often lead to sharp, but typically temporary, spikes in delinquent mortgages, as payments made on the last day of a given month are not processed until the following month.
About 1.873 million mortgages were 30 days or more past due but not in foreclosure, an increase of about 239,000 compared with May and up about 223,000 compared with June 2023.
Serious delinquencies increased in June as well, to about 431,000. That’s up 21,000, or 5.1%, compared with the previous month but down about 40,000, or 8.5%, compared with June 2023.
The foreclosure presale inventory rate was 0.35%, down about 3% compared with the previous month and down about 18% compared with a year ago.
As of the end of the month, there were about 186,000 residential properties in the foreclosure pre-sale inventory, down about 6,000 compared with May and down about 38,000 compared with June 2023.
That pushed active foreclosure inventory to its lowest point since the end of COVID-era moratoriums.
There were about 23,000 foreclosure starts in June – down about 6% compared with the previous month and down about 19% compared with a year ago.
The monthly prepayment rate was 0.53%, down about 7.6% compared with the month prior, and down about 5.7% compared with a year ago.
Photo: Agê Barros
