The U.S. mortgage delinquency rate—defined as loans 30+ days past due but not in foreclosure—fell to 3.27% in July, according to ICE Mortgage Technology’s First Look report. That level is nine basis points lower than a year ago and sits 58 basis points below pre-pandemic norms, signaling ongoing borrower resilience even amid economic uncertainty. 

Serious delinquencies (90+ days past due) rose by 30,000 year-over-year to 466,000, but ICE noted this was the smallest annual gain since last November, with lingering impacts from natural disasters such as wildfires and hurricanes beginning to fade. FHA loans, however, remain a pressure point, accounting for 52% of serious delinquencies, with delinquency rates climbing 15 basis points year-over-year. 

“If you are looking for signs of a faltering economy, you won’t find them in July’s mortgage performance data,” said Andy Walden, head of Mortgage and Housing Market Research at ICE. “New delinquency inflows were down 13% from June and 5% from the same time last year, with the national delinquency rate improving on an annual basis for the second straight month, breaking what had been a 13-month streak of consecutive increases.” 

Still, signs of stress persist. The number of homes in foreclosure rose 10% from a year earlier, with new foreclosure initiations increasing annually for eight straight months and foreclosure sales advancing for five consecutive months. Even so, the national foreclosure rate remains 35% below 2019 levels. Meanwhile, prepayment activity edged up to 0.67% in July, up more than 12% from last year, as modest rate improvements encouraged some refinancing and turnover activity.