Delinquencies Hit Highest Level In Nearly Three Years; Prepayments Drop On Higher Rates
Intercontinental Exchange, Inc. (NYSE:ICE), a provider of technology and data, reports the following “first look” at November 2024 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.
* The national delinquency rate jumped 29 basis points (bps) in November to 3.74%, its highest level in almost three years, marking six consecutive months of year-over-year increases
* While much of November’s spike was driven by seasonality, post-hurricane distress, and a late-in-the-month Thanksgiving, delinquencies more broadly continue to rise from recent year lows
* Early-, mid- and late-stage defaults all rose in November, with seriously delinquent loans – 90 or more days past due but not in active foreclosure – now at the highest level since February 2023
* Both foreclosure starts and completions dropped in November and remain well below pre-pandemic levels, leaving 31K fewer loans in active foreclosure than at the same time last year
* Prepayment activity fell -25.0% month over month on October’s higher interest rates, and remains nearly 30% off last year’s levels
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