The U.S. mortgage delinquency rate increased to 3.43% in August, up nearly 5% compared with July and up nearly 3% compared with August 2024, according to ICE Mortgage Technology’s First Look report.
The number of loans 30 days or more past due but not in foreclosure reached an estimated 1.885 million during the month, an increase of about 91,000 compared with July and up about 84,000 compared with August 2024.
The increase, however, was largely driven by a “calendar anomaly:” Because August ended on a Sunday, it means some end-of-month payments will end up being processed in September.
“The rise in the national delinquency rate for August is best understood in the context of how the calendar can impact payment processing,” explains Andy Walden, head of mortgage and housing market research at ICE, in the report. “Most of the uptick in the national delinquency rate can be attributed to delayed processing of end-of-month payments, as August closed on a Sunday this year. This calendar-driven effect is consistent with what we observed in prior years, so the increase should be considered a temporary adjustment rather than a shift in underlying borrower health.”
FHA loans continue to see the largest annual increases, with the non-current rate (delinquencies including foreclosures) up by 86 bps to 12.0% in August, while the non-current rates for VA, GSE, and portfolio-held mortgages remained effectively flat year over year, ICE says.
As of the end of August, about 482,000 residential properties were in serious delinquency (90 days or more past due but not in foreclosure), an increase of about 16,000 compared with the previous month and up about 32,000 compared with a year earlier.
There were about 29,000 foreclosure starts in August, by ICE’s calculations, a drop of 10.13% compared with July but up 5.82% compared with August 2024.
The foreclosure pre-sale inventory rate was 0.38%, up 1.3% compared with the previous month and up 10.5% compared with a year earlier.
Total U.S. foreclosure sales numbered about 7,000 for the month, basically flat compared with July but up 22.5% compared with August 2024.
Photo: Alexander Grey
