Mortgage delinquency rate rises to 3.66% in September, foreclosure inventory hits highest since 2019

The national mortgage delinquency rate increased by 12 basis points to 3.66% in September, according to Intercontinental Exchange (ICE)'s September 2026 First Look report. Despite the rise, the rate remains below pre-pandemic levels and is 34 basis points lower than in September 2019.

Early-stage delinquencies, defined as loans at least 30 days past due, rose 5% year over year, while serious delinquencies increased 21% from the previous year but decreased 5% from their peak in February. Loans 90 days or more past due accounted for 1.04% of mortgages, consistent with historical averages from 2017 to 2019.

Foreclosure activity showed mixed trends: foreclosure starts declined 3% year over year in September, but completed foreclosure sales rose 15%. Active foreclosure inventory increased 37%, reaching its highest level since early 2019. A significant portion of foreclosures involved loans originated in 2022 or later.

More than 75% of active foreclosures involved loans delinquent for less than 18 months. Meanwhile, mortgage prepayment speeds have declined for six consecutive months, with the single-month mortality rate dropping to 0.59% in September, the lowest since February 2025. Elevated mortgage rates are contributing to reduced prepayment activity.