U.S. foreclosure activity continued a gradual upward trend in April, driven in large part by an increase in loans backed by the Department of Veterans Affairs (VA), according to Intercontinental Exchange’s latest “First Look” report.
Nationally, foreclosure starts reached 29,000 in April, up nearly 13% from the same time last year. Completed foreclosure sales climbed to 6,500 — the highest single-month volume in more than a year — as VA-related activity surged to levels not seen since 2019.
Overall, the national mortgage delinquency rate remained steady, ticking up just one basis point to 3.22%. That’s still below pre-pandemic norms, ICE noted. But serious delinquencies — loans 90 days or more past due — rose for the sixth consecutive month year-over-year, and were up 14% compared to April 2024.
Florida stood out as the state with the most pronounced year-over-year deterioration in mortgage performance. The Sunshine State saw a 12.13% increase in its non-current loan rate — the largest jump of any state — and ranked among the top five states for loans 90+ days past due, at 1.30%.
Other states seeing notable year-over-year increases in non-current loans included Colorado (+10.90%), Arizona and Georgia (each +8.58%), and Michigan (+8.01%). At the other end of the spectrum, New York posted the sharpest improvement, with a 9.09% decline in non-current loans compared to April 2024.
Louisiana and Mississippi continued to lead the nation in overall non-current loan rates, both hovering above 7%, while Washington, Colorado, and Idaho posted the lowest rates, all near or below 2%.
Despite the rise in foreclosures, ICE described the current activity level as “muted” relative to historical norms. However, the ongoing rise in serious delinquencies and VA foreclosure actions suggests continued pressure in segments of the mortgage market.
Meanwhile, prepayment activity — often a proxy for refinance and home sale activity — surged nearly 35% year-over-year, likely reflecting a spring bump in housing turnover.
ICE’s report is based on its loan-level mortgage database, which covers a majority of the U.S. market.
