ICE data showed March delinquencies easing even as serious trouble kept climbing
Mortgage performance in March looked healthier on the surface, with fewer borrowers behind on payments and prepayments at their strongest pace in almost four years, according to new data from Intercontinental Exchange (ICE).
However, behind the seasonal bump, serious delinquencies and foreclosures continued to creep higher, extending a trend that has worried market watchers since late 2025.
The March 2026 ICE First Look report showed the national mortgage delinquency rate falling 37 basis points from February to 3.35%. That's roughly in line with typical springtime improvements, even though it remained 14 basis points above a year earlier.
The share of loans that were 30 or more days past due or in foreclosure dropped to 2.12 million, still 8.2% higher than in March 2025.
Seasonal reprieve masks late‑stage stress
“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 activity also climbed to its highest level in nearly four years as borrowers responded to a lower‑rate environment.”
Serious delinquencies still broadly trended higher, with about 154,000 more borrowers 90‑plus days past due or already in foreclosure than a year earlier.
Overall mortgage performance remains healthy for most borrowers, but the continued buildup in late‑stage delinquencies and foreclosure pipelines warrant close monitoring, Walden added.
Cure activity supported that story. ICE reported 547,000 cures in March, up 27% from February, including a strong rebound among loans that have been 90 or more days delinquent.
New delinquency inflows fell 23% on a seasonal basis, and transitions into 60‑ and 90‑day buckets improved.
Despite that, foreclosure starts rose to 39,000, up nearly 10% from February and about 17% year over year. Active foreclosure inventory reached 273,000 – the highest level since February 2020.
Prepayment speeds, measured by the single monthly mortality rate, climbed to 1.06% in March, up 24 basis points from February and roughly 78% above the same month a year earlier.
Stress also remained uneven across states. Mississippi (8.01%) and Louisiana (7.95%) posted the highest non‑current and serious‑delinquency shares, while states such as Hawaii (2.24%), Colorado (2.20%) and Idaho (2.11%) sat at the bottom of the non‑current rankings and showed some of the largest year‑over‑year improvements.
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