ATLANTA–The national delinquency rate ticked on VA mortgages was all but unchanged in April, ticking up just one basis point to 3.22%, and just 13 bps (4.1%) from the same time last year, according to First Look data released by Intercontinental Exchange, Inc.
The data is based on month-end delinquency, foreclosure and prepayment statistics sourced from its loan-level database, which covers a majority of the U.S. mortgage market, the company said.
The Key Takeaways
According to the First Look data, key takeaways include:
- Serious delinquencies. loans 90+ days past due but not in foreclosure – improved seasonally but rose 14% from April 2024 marking the sixth consecutive month of 10%+ annual increases.
- Foreclosures. While foreclosure activity remains muted, foreclosure starts (+13%), sales (+9%), and active inventory (+4%) all rose on an annual basis for the second consecutive month, ICE reported. April’s 6,500 foreclosure sales marked the largest single-month volume in 15 months, with VA sales, which account for the bulk of the recent rise, hitting their highest level since 2019.
- Prepayments. Prepayment activity, measured in single month mortality, jumped to 0.71%, the highest level since October. This rise was driven by stronger home sale and refinance-related prepayments, which grew +19.0% over the previous month and +34.9% over the previous year, the company said.
- Total Delinquencies. Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.22%
Month-over-month change: 0.28%
Year-over-year change: 4.10% - Total U.S. foreclosure pre-sale inventory rate: 0.38% Month-over-month change: -1.71% Year-over-year change: 3.74%
- Total U.S. foreclosure starts: 29,000
Month-over-month change -12.38%
Year-over-year change: 12.96% - Monthly prepayment rate (SMM): 0.71%
Month-over-month change: 19.01%
Year-over-year change: 34.92% - Foreclosure sales: 6,500. Month-over-month change: 6.42% Year-over-year change: 9.43%
