While less people filed for foreclosure in October, the number of homeowners seriously delinquent on their mortgage payments reached a 17-month high last month according to the latest data on mortgage performance from Intercontinental Exchange Inc. (ICE).
October featured historically muted foreclosure activity, though at 3.45%, the national delinquency rate rose 6% above Oct. 2023, marking five consecutive months of year-over-year increases.
While 30- and 60-day delinquencies down from September, seriously past due loans (90-plus days) continued rising 7.3% higher than last year, reaching their highest level since May 2023.
Foreclosure starts increased 12.2% in October, while foreclosure completions rose by 10.1% on a monthly basis. On an annual basis, starts and completions fell by 12.3% and 9.5%, respectively. Foreclosure starts and completions still remain well below pre-pandemic levels, according to ICE.
ATTOM’s recently released monthly outlook on foreclosure activity reflects similar trends, with foreclosure filings increasing 4% from September, but falling by 11% from Oct. 2023.
"Foreclosure activity remains challenging for U.S. homeowners, with starts and completed foreclosures up in October," ATTOM CEO Rob Barber commented on the nationwide data provider’s report. "As we approach 2025, the recent Fed rate cut, and the new administration could impact mortgage rates and market stability,” Barber went on to add.
ICE’s report showed October’s foreclosure inventory up by a modest 1,000 homes, though 28,000 fewer loans are in active foreclosure than at the same time last year.
Meanwhile, prepayment activity rose as a result of easing interest rates to a level not seen in over two years and nearly double where it was last October.
ATTOM previously reported that zombie foreclosures – which happen when a homeowner vacates their property after receiving a notice of mortgage default – were down 32.8% in the third quarter of 2024 from the year prior.
