Foreclosure Inventory Growth Slows to 9-Month Low, ICE Says
Intercontinental Exchange Inc., a leading provider of financial market technology and data powering global capital markets, reported that the national delinquency rate rose 14 basis points (bps) to 3.53% in August but was effectively flat after accounting for the prior month’s calendar-driven decline.
That’s according to the August 2026 ICE First Look at mortgage delinquency, foreclosure and prepayment trends.
“While overall performance remains sound, the market isn’t moving uniformly,” said Bob Hart, President of Mortgage Technology at ICE. “ICE is committed to giving lenders and servicers a clear view of the data, analytics and workflow tools they need to identify borrowers who may need assistance earlier, manage those cases more effectively and help keep people in their homes.”
Per ICE, here are some key takeaways from this month’s findings:
National delinquency rate rose on calendar effects: The national delinquency rate rose 14 basis points (bps) to 3.53% in August but was effectively flat after accounting for the prior month’s calendar-driven decline. The delinquency rate is up 10 bps year over year but remains 35 bps below its August 2019 level and below every pre-pandemic August on record.
Early-stage delinquencies remained below year-ago levels, while serious delinquencies climbed: ICE said loans 30 and 60 days past due rose in August but remain down 21,000 from a year ago. It said seriously delinquent loans rose by 11,000 to 574,000, ending five months of declines, and remain 19% above last year. Still, at 1.04% of active loans, the serious delinquency rate is in line with the 2017-2019 pre-pandemic August average of 1.03%.
Foreclosure starts, and sales eased: ICE said starts fell 6% in August, though still up 29% annually. Sales dipped 2%, running at just 57% of August 2019’s pace despite being up 12% year over year.
Foreclosure inventory held largely flat: ICE noted that the pre-sale inventory rate was unchanged at 0.54%, matching its highest reading since February 2020. Active inventory rose just 2,000, the smallest monthly build since November 2025, but is up 89,000, or 41%, year over year.
Prepayment speeds fell to a 17-month low: Single-month mortality was down 11 bps to 0.64%, marking a fifth consecutive monthly decline as mortgage rates trended higher. Recent originations from 2023-2025 led the pullback, with SMM easing to 0.91% from a March peak of 2.32%.
ICE’s data as of Aug. 30
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.53%
- Month-over-month change: 4.21%
- Year-over-year change: 2.94%
Total U.S. foreclosure pre-sale inventory rate: 0.54%
- Month-over-month change: 0.66%
- Year-over-year change: 41.08%
Total U.S. foreclosure starts: 37,000
- Month-over-month change: -5.80%
- Year-over-year change: 28.76%
Monthly prepayment rate (SMM): 0.64%
- Month-over-month change: -14.61%
- Year-over-year change: -3.82%
Foreclosure sales: 7,800
- Month-over-month change: -1.67%
- Year-over-year change: 11.66%
Number of properties that are 30 or more days past due, but not in foreclosure: 1,956,000
- Month-over-month change: 81,000
- Year-over-year change: 71,000
Number of properties that are 90 or more days past due, but not in foreclosure: 574,000
- Month-over-month change: 11,000
- Year-over-year change: 92,000
Number of properties in foreclosure pre-sale inventory: 298,000
- Month-over-month change: 2,000
- Year-over-year change: 89,000
Number of properties that are 30 or more days past due or in foreclosure: 2,254,000
- Month-over-month change: 84,000
- Year-over-year change: 160,000
