Loan performance remains historically solid, though mortgage delinquencies have been on the rise of late, with serious delinquencies reaching a 17-month high in October, according to new data from Intercontinental Exchange.

The national delinquency rate increased by 6% compared to the same time last year, rising to 3.45% to mark the fifth consecutive month of year-over-year increases. The counts of loans 30- and 60-days past due actually saw a slight decrease, but serious delinquencies (loans at least 90 days past due) continued to climb, up 7.3% from last year to reach their highest level since May 2023.

Foreclosure activity, meanwhile, saw a monthly rise in October, with both foreclosure starts and completions up by double digits — 12.2% and 10.1%, respectively. However, both starts (down 12.3%) and completions (-9.5%) are down from last year, and levels remain significantly lower than pre-pandemic rates. Foreclosure sales, likewise, totaled 5,800 in October, a 10% increase from September, but down almost 10% from the previous year and nearly 50% lower than 2019 levels.

Foreclosure inventory was modestly up by 1,000 loans, with 28,000 fewer loans in active foreclosure compared to the same time last year.

Overall, the mortgage market remains a resilient one despite delinquencies and foreclosure activity growing in the short-term and rising interest rates, natural disasters and a growing unemployment rate placing pressure on borrowers. ICE noted that the low foreclosure rates are likely due to factors such as high home equity, which allows borrowers to explore options other than foreclosure, and the availability of loss mitigation tools provided by servicers. Driven by easing interest rates, prepayment activity surged to levels not seen since May 2022, almost double what it was in October 2023.