Mortgage Performance Insights: Trends and Changes Ahead

Overview of Mortgage Performance Statistics

Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, offers insightful statistics on mortgage performance as of the end of 2024. These statistics paint a detailed picture of the current state of the mortgage market, highlighting delinquency rates, foreclosure inventories, and prepayment rates.

Delinquencies and Foreclosure Rates

The overall loan delinquency rate in the United States stood at 3.72%, marking a month-over-month decrease of 0.60% and a year-over-year increase of 4.02%. This indicates a stabilization trend amid varying economic factors affecting borrowers.

Foreclosure Overview

In December 2024, the foreclosure pre-sale inventory rate was recorded at 0.35%, reflecting a month-over-month rise of 3.72% but a notable year-over-year decline of 10.68%. The total number of foreclosure starts reached approximately 31,000, showing a significant increase of 50.37% month-over-month and 29.69% on an annual basis. These figures indicate that while foreclosure conditions might be escalating, the long-term trends are improving as seen in the declining year-over-year changes.

Prepayment and Sales Insights

The monthly prepayment rate stood at 0.57%, representing a decrease of 9.83% from the previous month and a substantial rise of 47.16% compared to the same time last year. Additionally, foreclosure sales numbered 5,000, dipping by 5.63% month-over-month and 6.12% year-over-year, indicating a slight slowdown in the market.

Delinquency Statistics by Category

As of the end of the year, there were over 2 million properties (approximately 2,016,000) that were 30 or more days past due but not in foreclosure, down by 11,000 from the previous month but up by 108,000 from the previous year. Furthermore, the number of properties 90 or more days past due was recorded at 541,000, increasing by 29,000 month-over-month and 66,000 year-over-year.

Current Property Status

The number of properties in foreclosure pre-sale inventory was about 192,000, with an increase of 7,000 from the prior month but a decrease of 20,000 compared to the previous year. The total number of properties either 30 or more days past due or in foreclosure was 2,208,000, indicating a decrease of 4,000 from the previous month but an increase of 89,000 year-over-year.

State-wise Analysis of Non-Current Percentages

Looking at specific states, Louisiana leads the chart with a non-current rate of 8.60%, followed closely by Mississippi at 8.33%. Alabama, Indiana, and Arkansas also featured high non-current percentages, underscoring regional disparities in mortgage performance.

Best and Worst Performing States

On the contrary, Oregon, Colorado, Idaho, Washington, and Montana boasted the lowest non-current percentages, with Oregon showing a commendable 2.28%. The performance variations across different states highlight the complexities of the mortgage market nationally.

Long-Term Trends and Forecast

Intercontinental Exchange will continue to delve deeper into these statistics in its upcoming monthly Mortgage Monitor report. The report aims to provide detailed analyses, trends, and practical insights supported by various visual data representations.

Invitation for Further Engagement

For those interested in accessing the loan-level database, Intercontinental Exchange encourages inquiries for assistance in further engagement or insights. The upcoming Monthly Mortgage Monitor report will enhance understanding and foster informed decision-making in the mortgage sector.

Frequently Asked Questions

1. What are the current delinquency rates?

The current total U.S. loan delinquency rate is 3.72% as of December 2024.

2. How many properties are currently foreclosed?

Approximately 192,000 properties are in foreclosure pre-sale inventory.

3. What states have the highest non-current percentages?

Louisiana, Mississippi, and Alabama have the highest non-current percentages.

4. What are the trends in prepayment rates?

The monthly prepayment rate is currently at 0.57%, with a significant increase compared to last year.

5. Where can I find the full Mortgage Monitor report?

The report will be available online at the Intercontinental Exchange's Mortgage Technology resources page.

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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. If any of the material offered here is inaccurate, please contact us for corrections.