ICE data shows the national delinquency rate unchanged, but serious delinquencies and foreclosure inventory continue to climb year on year
The US mortgage market held its ground in April 2026, with the national delinquency rate flat at 3.35%. However, a widening divide between early- and late-stage borrower stress is drawing fresh attention from lenders, servicers, and brokers across the country.
New data released by Intercontinental Exchange, Inc. in its April 2026 First Look report shows that while the overall share of past-due loans was unchanged from March and remained 45 basis points below the January 2020 pre-pandemic benchmark, the picture beneath the headline figure is more nuanced.
Year over year, delinquency levels are up 13 basis points, driven almost entirely by borrowers stuck in the later stages of distress.
"Mortgage performance remained broadly stable from March to April, with the overall share of past-due loans unchanged and below pre-pandemic levels," said Andy Walden, head of Mortgage and Housing Market Research at ICE.
"At the same time, the annual increase in past-due loans continues to be concentrated in later-stage delinquencies, while early-stage delinquencies remain below last year's levels, suggesting that most homeowners continue to stay on track."
Read more: US CMBS delinquency rate dips slightly in April even as large loans turn troubled
Serious delinquencies edge down but remain elevated
Loans 90 or more days past due but not yet in foreclosure dipped seasonally in April for the second consecutive month, falling by 11,000 to 577,000.
Despite that, the serious delinquency count remains approximately 21%, or 101,000 loans, above where it stood a year ago, according to ICE.
Early-stage delinquencies tell a different story. Loans 30 or 60 days past due are down roughly 5,000 from last year's levels, pointing to stable near-term borrower behavior even as the backlog of seriously distressed loans remains elevated.
Freddie Mac reported the average 30 year fixed mortgage rate rose to 6.51 percent, while Nicholas Barta of Security First Financial said hopes for rates firmly returning to the fives this year are becoming increasingly unrealistic.https://t.co/tLebzUuGA0
— Mortgage Professional America Magazine (@MPAMagazineUS) May 25, 2026
Meanwhile, according to ATTOM, foreclosure activity across the US has been normalizing after historically suppressed pandemic-era levels, a trend the April ICE data reinforces.
Foreclosure starts in April reached 37,000, the highest April count since the pre-pandemic era, while foreclosure sales rose 22% year over year to 7,900.
Active foreclosure inventory climbed to 276,000 loans, up 32% from a year ago and above the March 2020 pre-pandemic count of 271,000 for the second straight month.
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Cure activity rebounds, but remains below prior-year pace
One of the more closely watched signals in the April report is the recovery in cure activity — the rate at which borrowers resolve seriously delinquent loans.
After a sharp fall from November 2025 through February 2026, cures bounced back in March and April, with more than 62,000 borrowers curing seriously delinquent loans in each of those two months. That compares favorably to an average of approximately 42,000 cures during the preceding four months.
However, ICE cautioned that cure activity from serious delinquency remains roughly 20% below last year's pace, making it a metric worth monitoring closely.
Walden noted in the April report that "cure activity has also rebounded over the past two months, though it remains below year-ago levels, making it important to monitor in the months ahead."
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State-level dispersion in the ICE data is stark. Mississippi (8.06%) and Louisiana (7.95%) led all states in non-current loan percentages, while Idaho (1.94%) and Montana (2.06%) recorded the lowest.
On a 12-month change basis, Kentucky saw the sharpest deterioration, up 18.27%, followed by Indiana (17.24%) and Ohio (17.09%).
By contrast, Idaho (-3.84%) and New York (-2.01%) posted the most improvement.
Prepayment activity, measured as the single month mortality (SMM) rate, fell 13% from March as rates moved higher, landing at 0.92%.
Despite the monthly retreat, prepayment volume remains significantly stronger than the same period in 2025, a sign that some rate-sensitive refinancing demand persists even in a higher-rate environment.
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