National mortgage delinquency rates fell 16 basis points in July, signaling that the mortgage environment may be improving, according to a report from Intercontinental Exchange Inc. (ICE).
The company’s “First Look” report, which details mortgage delinquency, foreclosure and prepayment trends, found monthly improvement in all stages of the delinquency process in July. The national delinquency rate is still 12 basis points higher than one year ago, but it is 46 bps below the level of July 2019, which is being used as a pre-pandemic benchmark.
Serious delinquencies — loans that are 90 days or more past due, but not yet in foreclosure — declined for the fifth consecutive month. The total number of serious delinquencies, however, remains 87,000 above the level in July 2019.
The inflow of new loans in default has also been on the decline, falling in four of the past five months. In July, the number of new borrowers who became delinquent for 90 days or more fell to 102,000, down 4% from a year ago. FHA loans led the decline with 13% fewer new defaults than during July of 2025.
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The number of accounts that have been returned from serious delinquency to good standing, also known as “cures,” rose 7% in July to 64,100. July was the strongest month for cures since October 2025. The total number of cures at all stages of the delinquency process climbed 12% to 464,000, the highest number since March.
ICE noted that foreclosure starts reached 38,600 in July, a 23% year-over-year increase. Data from Attom released Thursday put that figure at 26,648, a 10% gain from the real estate analytics firm’s July 2025 data.
Despite the uptick in foreclosure starts, Andy Walden, head of mortgage and housing market research for ICE, believes the overall July data shows “mortgage performance may be finding firmer footing beneath the surface.”
“While the national delinquency rate and serious delinquency inventory declined, the more telling trend is that new default activity has eased from last year’s levels in four of the past five months, and cure activity is improving,” Walden observed.
