The national delinquency rate rose five basis points in June to 3.55%, an increase Intercontinental Exchange Inc. (ICE) described as “roughly half the typical seasonal rise” in its “first look” mortgage performance report, published Friday.

“Overall performance remained strong in June,” said Andy Walden, head of mortgage and housing market research at ICE, in a press release. “Early-stage delinquencies remain subdued, and while serious delinquencies including foreclosures have reached pre-pandemic levels, new default activity has leveled off in recent months — a positive sign.”

Walden also observed an “encouraging” trend in the default rate for loans backed by the Federal Housing Administration (FHA): The default rate for that segment fell 15% year over year in June, the largest annual decline in more than four years, according to ICE data.

By comparison, the overall delinquency rate stood at 4.16% in June 2019, leaving last month’s rate roughly 60 basis points lower than the pre-pandemic benchmark.

Late-stage delinquencies also fell to a six-month low, with serious delinquencies that were 90 or more days past due but not in foreclosure totaling 570,000, a dip of about 6,000.

A more concerning trend was seen in total U.S. foreclosure starts, which hit 43,000 in June, a 29% increase from May. That was a six-year high, ICE noted.

The 7,300 foreclosure sales registered in June represented a 16% annual increase. But they remained 46% below pre-pandemic levels, with some homeowners under financial strain still having the safety net of an equity cushion built up by years of accelerating home prices since the pandemic era.

“High levels of homeowner equity continue to strengthen the market and help many distressed borrowers avoid foreclosure,” stated Bob Hart, president of mortgage technology at ICE. “Still, early foreclosure activity bears watching.”