Key takeaways from the ICE First Look include:

• National delinquency rate: The delinquency rate fell by eight basis points (bps) in July to 3.27%, a 9-basis-point improvement year over year (YoY) and still 58 basis points below its 2019 levels.
• Serious delinquencies: Loans 90+ days past due but not in foreclosure held steady overall. Also, while serious delinquencies are up 30,000 YoY, it is the smallest annual increase since November, as the impacts from recent wildfires and last year’s hurricanes continue to fade.
• FHA delinquencies: FHA loans remain the primary driver of stress in the market. While FHA delinquencies ticked down by 5 basis points in July, they are still 15 basis points above year-ago levels and now account for the majority (52%) of serious delinquencies nationwide.
• Foreclosure activity: Foreclosure inventory rose 10% YoY, with starts increasing annually for eight straight months and foreclosure sales up in each of the past five months. Even so, the national foreclosure rate remains 35% below pre-pandemic norms.
• Prepayment activity: Prepayments edged up slightly to 0.67% in July on a modest improvement in rates and are up more than 12% from a year ago.