Foreclosure, Delinquency Rates Stabilize in September

The housing market is showing signs of resiliency, with both delinquency and foreclosure rates beginning to moderate. According to ICE Mortgage Technology’s September 2025 First Look Report, which tracks trends across the mortgage market, housing market performance remains historically strong despite challenging economic conditions.

In September, delinquency rates declined by two basis points to 3.42%, and compared with September 2024, delinquency rates fell by six basis points. Additionally, the current delinquency rate is 58 basis points below September 2019 levels. Meanwhile, foreclosure activity grew by 23% year-over-year, with 103,000 foreclosure starts in Q-3 2025. Even so, the foreclosure market has been gradually stabilizing, with foreclosure starts still 18% below levels seen in Q-3 2019.

“The mortgage market remains remarkably resilient, with mortgage performance continuing to hold up well,” said Andy Walden, Head of Mortgage and Housing Market Research at ICE. “Delinquency rates improved in September, and even as we see increases in activity among FHA loans, we’re largely returning to more typical levels following several years of artificially low foreclosure volumes.”