Mortgage delinquency and foreclosure rates rise in US

National mortgage delinquency rates rose to 3.66% in September, according to a report from Intercontinental Exchange (ICE). While this increase aligns with seasonal norms and remains below pre-pandemic levels, early-stage delinquencies—loans at least 30 days past due—increased by 5% year over year. Serious delinquencies, defined as loans at least 90 days past due, accounted for 1.04% of mortgages.

Foreclosure activity is also trending upward. Active foreclosure inventory climbed to its highest level since early 2019, increasing by 37%. Completed foreclosure sales rose by 15%. Data indicates that more recent mortgages are increasingly represented in the foreclosure pipeline, with loans originated in 2022 or later accounting for 43% of foreclosure starts and 49% of completed sales in September.

In Maryland, lenders issued 8,530 notices of intent to foreclose in September, a 12% increase compared to the previous year, according to the state’s Office of Financial Regulation. Nationally, completed foreclosure auctions reached their highest levels since early 2020, driven significantly by FHA-insured loans, which saw a 73% year-over-year increase in auction volume.