ICE First Look at Mortgage Performance: National Mortgage Delinquency Rate Edges Lower in January
MWN-AI** Summary
In the January 2026 release of the ICE First Look at mortgage performance, the Intercontinental Exchange (ICE) reported a slight decrease in the national mortgage delinquency rate, which fell by 3 basis points to 3.65%. This decline marks a notable improvement compared to the pre-pandemic benchmark of January 2020 and is attributed primarily to a reduction in early-stage delinquencies, with 54,000 fewer borrowers reported being 30 to 60 days late on their payments.
Despite the positive trend in early-stage delinquencies, the report highlights a simultaneous increase in late-stage delinquencies and foreclosure activity. As of January 2026, over 850,000 borrowers were 90 or more days past due or in active foreclosure—an increase of 104,000 from the previous year, representing the highest such volume since July 2022. Notably, this January saw a significant spike in foreclosure starts, with 42,000 recorded, up 5% year-over-year, alongside a 28% rise in foreclosure sales.
Furthermore, the report indicates a decline in prepayment activity, with the single-month mortality (SMM) rate dropping to 0.72%, primarily due to rising interest rates that have impacted home sales and refinancing activities.
Overall, while most borrowers are maintaining their payment schedules, a segment of the population is experiencing heightened financial strain. The state-level analysis reveals Louisiana and Mississippi having the highest non-current mortgage rates, while California and Colorado report the lowest. ICE plans to provide a more detailed examination of these trends in its upcoming monthly Mortgage Monitor report available online.
MWN-AI** Analysis
In January 2026, the national mortgage delinquency rate decreased slightly to 3.65%, reflecting early-stage improvements in borrower performance. This decline is partly attributed to a reduction in early-stage delinquencies, with 54,000 fewer borrowers falling 30 or 60 days behind on payments compared to December. Despite this positive trend, late-stage delinquencies and foreclosure rates have risen, indicating that a segment of borrowers continues to face financial pressure.
For investors and stakeholders in the mortgage and housing markets, these mixed signals necessitate a cautious outlook. The overall stability in the mortgage performance metrics suggests that the housing market remains resilient; however, the increase in serious delinquencies, with over 850,000 borrowers significantly past due, warrants attention. The rise in foreclosure starts, reaching 42,000—marking the highest monthly total since early 2020—further complicates this landscape.
Investors should closely monitor the ongoing shifts in interest rates and their correlation with prepayment behavior. The monthly prepayment rate dropped to 0.72% in January, likely reflecting a slowing in refinancing activity as borrowers respond to higher interest rates. This trend could impact liquidity in real estate markets and investor appetite in mortgage-backed securities (MBS).
Geographically, states such as Louisiana and Mississippi show higher non-current percentages, hinting at localized economic challenges that may affect future performance in these areas. Investors may consider curating portfolios that either hedge against these risks or tap into emerging markets with lower delinquency rates, like California and Colorado.
In conclusion, while the overall mortgage landscape displays resilience, the rise in late-stage delinquencies and foreclosure activity emphasizes the need for vigilant market analysis and strategic investment approaches.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today released the January 2026 ICE First Look at mortgage delinquency, foreclosure and prepayment trends.
“Mortgage performance held steady to start the year, with fewer early-stage delinquencies helping bring the national delinquency rate down,” said Andy Walden, Head of Mortgage and Housing Market Research at ICE. “At the same time, late-stage delinquencies and foreclosure volumes are both trending higher than they were a year ago. The data points to a market that remains resilient overall with most borrowers performing well while a subset faces increased payment pressure.”
Key takeaways from this month’s findings include:
- The national delinquency rate eased in January: Delinquencies fell by 3 basis points (bps) in January to 3.65% and remain 15 bps below the January 2020 pre-pandemic benchmark.
- Early-stage delinquencies drove the decrease: The number of borrowers 30 or 60 days late on their mortgage payments fell by 54,000 from December to January, driving the overall improvement in delinquency figures.
- Combined serious delinquency and foreclosure volumes increased: While earlier stage delinquencies improved, there are now more than 850,000 borrowers 90-plus days past due or in active foreclosure, up 104,000 from the same time last year, the largest such volume since July 2022.
- Foreclosure activity continued to rise: January saw 42,000 foreclosure starts, the highest monthly total since early 2020 and up 5% year over year, with foreclosure sales rose 28%.
- Prepayments pulled back: The single month mortality (SMM) rate, which tracks prepayments, dropped 19 bps to 0.72% from elevated levels over the past three months. An uptick in interest rates in December resulted in fewer January home sales and reduced refinance activity.
Data as of January 31, 2026
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.65%
Month-over-month change: -0.93%
Year-over-year change: 5.04%
Total U.S. foreclosure pre-sale inventory rate: 0.46%
Month-over-month change: 6.78%
Year-over-year change: 22.38%
Total U.S. foreclosure starts: 42,000
Month-over-month change 6.47%
Year-over-year change: 4.77%
Monthly prepayment rate (SMM): 0.72%
Month-over-month change: -21.17%
Year-over-year change: 49.59%
Foreclosure sales: 8,100
Month-over-month change: 13.38%
Year-over-year change: 27.87%
Number of properties that are 30 or more days past due, but not in foreclosure: 2,006,000
Month-over-month change: -19,000
Year-over-year change: 121,000
Number of properties that are 90 or more days past due, but not in foreclosure: 595,000
Month-over-month change: 35,000
Year-over-year change: 55,000
Number of properties in foreclosure pre-sale inventory: 255,000
Month-over-month change: 16,000
Year-over-year change: 49,000
Number of properties that are 30 or more days past due or in foreclosure: 2,261,000
Month-over-month change: -3,000
Year-over-year change: 170,000
Top 5 States by Non-Current* Percentage | |
Louisiana: | 8.64% |
Mississippi: | 8.53% |
Alabama: | 6.35% |
Arkansas: | 6.03% |
Indiana: | 5.92% |
Bottom 5 States by Non-Current* Percentage | |
California: | 2.33% |
Colorado: | 2.30% |
Washington: | 2.17% |
Montana: | 2.16% |
Idaho: | 2.08% |
Top 5 States by 90+ Days Delinquent Percentage | |
Mississippi: | 2.53% |
Louisiana: | 2.42% |
Alabama: | 1.94% |
Arkansas: | 1.74% |
Georgia: | 1.65% |
Top 5 States by 12-Month Change in Non-Current* Percentage | |
Florida: | -1.83% |
Hawaii: | -1.62% |
Vermont: | -0.39% |
New York: | 0.09% |
Wyoming: | 0.28% |
Bottom 5 States by 12-Month Change in Non-Current* Percentage | |
Utah: | 18.06% |
Maryland: | 14.73% |
Arkansas: | 13.77% |
Arizona: | 13.37% |
Nevada: | 11.66% |
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. | ||
| Notes: | ||
1) | Totals are extrapolated based on ICE’s loan-level database of mortgage assets. | |
2) | All whole numbers are rounded to the nearest thousand, except foreclosure starts and sales, which are rounded to the nearest hundred. |
The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online at https://www.icemortgagetechnology.com/resources/data-reports .
For more information about gaining access to ICE’s loan-level database, please send an email to ICE-MortgageMonitor@ice.com.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology , we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here . Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 5, 2026.
Category: Mortgage Technology
Source: Intercontinental Exchange
View source version on businesswire.com: https://www.businesswire.com/news/home/20260226570610/en/
ICE Media Contact
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FAQ**
How does the recent mortgage delinquency trend reported by Intercontinental Exchange Inc. (ICE) impact the overall risk profile of the housing market in 2026?
What measures is Intercontinental Exchange Inc. (ICE) taking to address the increase in late-stage delinquencies and foreclosures observed in their latest report?
Given the dip in prepayment rates, how might this affect future revenue streams for Intercontinental Exchange Inc. (ICE) in their mortgage technology sector?
How does the performance of individual states, as highlighted by Intercontinental Exchange Inc. (ICE), influence your investment strategy in the mortgage market?
**MWN-AI FAQ is based on asking OpenAI questions about Intercontinental Exchange Inc. (NYSE: ICE).
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