Intercontinental Exchange, Inc. (NYSE: ICE), through its subsidiary ICE Mortgage Technology, has released its findings on mortgage performance for September 2025. The results show a continued resilience in the mortgage market, with delinquency and foreclosure rates remaining below long-term averages. While there have been some increases in government-backed loan segments, these changes are viewed as a normalization rather than a sign of widespread weakness.

Andy Walden, Head of Mortgage and Housing Market Research at ICE, noted, “The mortgage market remains remarkably resilient, with mortgage performance continuing to hold up well.” He highlighted improvements in delinquency rates and explained that the increases in Federal Housing Administration (FHA) loans reflect a return to typical levels after years of low foreclosure volumes.

2. Key Findings from September 2025

Delinquency Rates

National Delinquency Rate: The national delinquency rate decreased by 2 basis points (bps) to 3.42%. This is a significant reduction of 6 bps year-over-year and 58 bps compared to pre-pandemic levels in September 2019.

Improvement Across Delinquency Bands: Both early-stage (30-day) and late-stage (90+ day) delinquencies saw month-over-month improvements, indicating that the majority of borrowers are keeping up with mortgage payments.

Non-Current Rates

Investor Non-Current Rates: Non-current rates (which include delinquencies and active foreclosures) improved across various investor types:

GSE (Government-Sponsored Enterprises): Down 3 bps

VA (Veterans Affairs): Down 4 bps

Portfolio-held loans: Down 17 bps

FHA loans saw an increase of 44 bps year-over-year.

Foreclosure Activity

Foreclosure Starts: In Q3 2025, there were 103,000 foreclosure starts, a 23% increase from the previous year but still 18% below Q3 2019 levels.

Active Foreclosures: The number of loans in active foreclosure rose modestly, up 18% year-over-year. However, overall foreclosure volumes remain low, with foreclosure sales totaling 21,000, approximately half of 2019 levels. FHA loans accounted for a significant portion of the rise in foreclosures.

Prepayment Trends

Increasing Prepayments: Prepayment rates increased by 8 bps in September, resulting in a single-month mortality (SMM) rate of 0.74%. This reflects a 15% increase from the previous year as interest rates began to stabilize.

3. Detailed Mortgage Performance Metrics

Total U.S. Loan Delinquency Rate: 3.42% (mo. change: -0.44%, yo. change: -1.75%)

Total U.S. Foreclosure Pre-Sale Inventory Rate: 0.40% (mo. change: +5.69%, yo. change: +16.38%)

Total U.S. Foreclosure Starts: 42,000 (mo. change: +43.51%, yo. change: +60.53%)

Monthly Prepayment Rate (SMM): 0.74% (mo. change: +11.72%, yo. change: +15.29%)

Foreclosure Sales: 7,200 (mo. change: +2.74%, yo. change: +34.90%)

4. State-by-State Insights

Top 5 States by Non-Current Percentage:

Louisiana: 7.91%

Mississippi: 7.83%

Alabama: 5.86%

Indiana: 5.55%

Arkansas: 5.54%

Bottom 5 States by Non-Current Percentage:

Hawaii: 2.20%

Colorado: 2.16%

Montana: 2.13%

Washington: 2.05%

Idaho: 2.03%

5. Conclusion

The September 2025 ICE First Look report underscores the strength and resilience of the U.S. mortgage market, with delinquency rates well below pre-pandemic norms and a gradual return to historical foreclosure activity levels. While some segments, particularly FHA loans, are exhibiting increased challenges, overall trends indicate a healthy mortgage landscape.

Upcoming Reports

ICE will provide a more comprehensive analysis in its upcoming Mortgage Monitor report, set to be released on October 6, 2025. This report will delve deeper into the data and trends observed in the mortgage market.

As ICE continues to serve as a leading provider of mortgage data and technology solutions, stakeholders can look forward to enhanced insights that will help navigate the evolving financial landscape.

Original press release