Intercontinental Exchange (ICE) on Friday released its March 2026 ICE First Look report, which showed seasonal improvement in mortgage performance, with delinquencies and non-current loan volumes declining and prepayment activity jumping to a near four-year high, even as serious delinquencies and foreclosure inventories continued to climb.
The national mortgage delinquency rate fell 37 basis points in March to 3.35%, according to the report, broadly in line with typical seasonal improvement for the month. The rate, however, remained 14 basis points higher than in March 2025, underscoring that overall performance is slightly weaker than a year ago.
“March brought the seasonal improvement we typically expect to see this time of year,” said Andy Walden, head of mortgage and housing market research at ICE. “Delinquencies moved lower, with improvement across the earlier stages of mortgage performance as fewer loans rolled into delinquency.”
Prepayment speeds, a key indicator for mortgage servicing and MBS investors, rose sharply. The single-month mortality (SMM) rate climbed 24 basis points from February to 1.06%, the highest level in nearly four years and 78% above March 2025. ICE attributed the pickup to borrowers responding to a lower-rate environment.
On the inflow side, performance improved across the delinquency pipeline. New delinquency inflow fell 23% on a seasonal basis in March and was effectively flat compared to the same month last year. Rolls into 60- and 90-day delinquency also improved over the month, reflecting fewer loans progressing into more severe stages of distress.
Cure activity strengthened notably. Total cures rose to 547,000 in March, up 27% from February, with cures among loans 90 or more days past due also posting a strong month-over-month increase. The total number of loans 30 or more days past due or in foreclosure fell by 194,000 to 2.12 million, although that figure remained 8.2% above year-ago levels.
Despite the seasonal improvement, ICE reported a continued build-up in serious delinquencies and foreclosure pipelines. There were 154,000 more borrowers who were 90 or more days past due or in active foreclosure compared with March 2025. Foreclosure starts rose 17% from last year’s levels and foreclosure sales increased 21%.
Active foreclosure inventory reached 273,000 loans in March, up from 213,000 a year earlier and the highest level since February 2020. That six-year high in foreclosure inventory signals that distressed loans are taking longer to resolve and that more borrowers are moving into the foreclosure process.
“While overall mortgage performance remains healthy for most borrowers, the continued buildup in late-stage delinquencies and foreclosure pipelines remains worth watching,” Walden said.
This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.
