The U.S. mortgage market remained broadly stable in April, but rising levels of serious delinquencies and foreclosure inventory continue to signal growing stress among a subset of borrowers, according to new data released Tuesday by Intercontinental Exchange (ICE).
ICE’s April 2026 First Look report found the national delinquency rate held steady at 3.35% in April, unchanged from March and still below pre-pandemic levels. However, overall delinquencies were up 13 basis points from a year earlier, driven primarily by an increase in loans that are 90 or more days past due but not yet in foreclosure.
“Mortgage performance remained broadly stable from March to April, with the overall share of past-due loans unchanged and below pre-pandemic levels,” said Andy Walden, head of mortgage and housing market research at ICE.
“At the same time, the annual increase in past-due loans continues to be concentrated in later-stage delinquencies, while early-stage delinquencies remain below last year’s levels, suggesting that most homeowners continue to stay on track,” Walden said. “Cure activity has also rebounded over the past two months, though it remains below year-ago levels, making it important to monitor in the months ahead.”
According to ICE, serious delinquencies declined seasonally for the second consecutive month in April, but remained 21% higher than a year ago — an increase of roughly 101,000 loans. Meanwhile, early-stage delinquencies, including loans 30 or 60 days past due, fell by 5,000 loans year over year.
The report also showed signs of improvement in borrower recovery activity. More than 62,000 borrowers cured seriously delinquent loans in both March and April, up sharply from an average of 42,000 cures during the prior four months. Still, cure volumes remain 20% below year-ago levels.
Mirza Hodzic, managing director and founder of BlackWolf, which helps mortgage servicers improve operational systems and workflow management, said the divergence between stable headline numbers and rising late-stage distress is particularly important for mortgage servicers.
“What stands out is the mix of stability and stress,” Hodzic said. “The headline delinquency rate is basically flat, but the year-over-year increase is concentrated in 90-plus-day delinquencies. That is the bucket that drives the most operational work and the most borrower risk if it is not managed tightly.”
Hodzic added that while rising cure activity is encouraging, the broader context still points to ongoing pressure in servicing operations.
“The rebound in cures is encouraging, but the context matters,” he said. “Cures from serious delinquency are still running below last year, so you can see why later-stage delinquency remains elevated. That combination tells me servicers should plan for continued pressure on loss mitigation execution and borrower engagement.”
Foreclosure activity also continued moving toward more normalized levels in April. ICE reported 37,000 foreclosure starts during the month — the highest April total since before the pandemic — alongside 7,900 foreclosure sales, up 22% from a year earlier.
Despite the increases, both metrics remain below pre-pandemic averages after years of historically low foreclosure activity tied to pandemic-era protections and borrower assistance programs.
Active foreclosure inventory rose by 3,000 loans in April to 276,000, marking a 32% increase from a year ago and exceeding the March 2020 pre-pandemic benchmark for the second straight month. The foreclosure rate stood at 0.50%, slightly below the 0.53% level recorded in March 2020.
“The foreclosure inventory trend is important,” Hodzic said. “Active foreclosure inventory is up materially from a year ago and is now above the pre-pandemic benchmark ICE cited. That tells servicers they need discipline on milestone tracking and escalation, because a growing inventory can quietly turn into aging, higher costs, and more complaints if it is not actively managed.”
He also warned that rising foreclosure activity could increase operational strain across servicing organizations and vendor networks.
“Even before you get to a sale, higher starts mean more demand on document flow, counsel oversight, vendor coordination, and timeline management,” Hodzic said. “That is where defects and delays show up first.”
The report also found that mortgage prepayment activity slowed by 13% from March as mortgage rates rose, though prepayments remained significantly above year-ago levels.
*This article was drafted with AI assistance and reviewed and edited by a human editor before publication.
