Mortgage Delinquencies Drop, Foreclosure Rates Improve In February
A total of 6,000 foreclosure sales were completed in February, a 9% decrease from January and the second-lowest level in the previous 12 months.
The number of homes that entered foreclosure in February reached its second-lowest level in a year and delinquencies also improved, the latest Intercontinental Exchange Inc. (ICE) mortgage performance report revealed.
The national delinquency rate eased to 3.34% in February, down four basis points (bps) from January and 11 bps lower than in February 2023, ICE reported.
There were 25,000 foreclosure starts in February, the second-lowest level in 12 months. Serious delinquencies, or loans 90-plus days past due but not in active foreclosure, decreased 18% year over year.
While the number of borrowers one payment behind rose modestly by 10,000, those 60 days late and those 90 or more days past due both fell to their lowest levels in three months.
The number of loans in active foreclosure fell by 7,000 to 211,000, remaining 25% below pre-pandemic levels.
A total of 6,000 foreclosure sales were completed in February, a 9% decrease from January and the second-lowest level in the previous 12 months.
The ICE report also indicated that prepayment activity rose three bps in February – the highest since October 2023. Analysts attributed this in part to the brief reprieve in mortgage rates experienced at the beginning of the month, which provided an incentive for borrowers to refinance their loans.
ICE’s “first look” at February 2024 month-end mortgage performance statistics will be followed by a more in-depth review in the company’s monthly Mortgage Monitor report, expected to be released by April 1.