ICE
found
that
overall
mortgage
performance
was
strong
in
October,
with
the
national
delinquency
rate
falling
by
7
basis
points
(bps)
to
3.34%.
That’s
down
11
bps
from
the
same
time
last
year
and
53
bps
below
the
October
2019
pre-pandemic
benchmark.

Andy
Walden,
ICE’s
head
of
mortgage
and
housing
market
research,
said
modest
rate
relief
this
fall
sparked
a
jump
in

mortgage
applications
and
added
to
the
strong
performance.

“We’re
now
seeing
the
highest
concentration
of
rate-and-term
refinances
in
nearly
five
years,
almost
entirely
driven
by
borrowers
holding
2023-2025
vintage
loans,”
he
said.
“Notably,
the
market
has
become
more
rate
sensitive
as
hundreds
of
thousands
of
borrowers
move
in
and
out
of
refinance
incentive
with
small
daily
rate
shifts.”

Nonbank
servicers
retained
borrowers
at
nearly
three
times
the
rate
of
banks
—
35%
compared
to
13%.
Retention
was
highest
for


Federal
Housing
Administration
(FHA)
and


U.S.
Department
of
Veterans
Affairs (VA)
loans
at
36%,
followed
by
loans
backed
by

Fannie
Mae
and

Freddie
Mac
at
25%.
Privately
securitized
loans
saw
the
lowest
retention
at
6%.

Rate-and-term
refinances
made
up
62%
of
all
refi
activity
in
October,
the
highest
share
in
almost
five
years,
ICE
said.
Nearly
all
(95%)
rate-and-term
refis
in
September
and
October
involved
borrowers
with
2023–25
vintage
loans.

These
borrowers
carried
an
average
loan
balance
of
$505,000
and
a

credit
score
of
762,
and
they
cut
their
mortgage
rates
by
an
average
of
0.92
percentage
points,
saving
roughly
$200
per
month.

Home
equity
loan
and
home
equity
line
of
credit
(HELOC)
activity
also
increased.
Second-lien
home
equity
loan
withdrawals
rose
to
their
highest
level
since
2007
in
the
third
quarter,
as
homeowners
with
low-rate
first
mortgages
looked
for
alternatives
to
tapping
equity
without
refinancing
their
primary
loan.

Improved
affordability
also
played
a
role,
helped
by
tighter
Treasury
yield
spreads.
The
ICE
report
said
that
all
100
major
U.S.
metro
areas
have
seen
affordability
improve
year
over
year.

Average

mortgage
rates
hovered
around
6.25%
in
mid-November,
putting
the
monthly
payment
on
a
median-priced
home
at
roughly
$2,126,
or
29.7%
of
the
median
household
income.
ICE
said
that
even
though
that’s
still
high
by
historical
standards,
it’s
the
lowest
share
since
early
2023.

“ICE’s
2025
Borrower
Insights
Survey
found
that
78%
of
borrowers
only
shop
one
or
two
options
before
choosing
a
lender,”
said

Tim
Bowler,
president
of
ICE
Mortgage
Technology.
“In
a
sensitive
rate
environment,
this
limited
shopping
behavior
amplifies
the
importance
of
being
first
to
reach
motivated
borrowers.”
 

Foreclosure
activity
remains
historically
low
but
is
rising,
ICE
found.
About
79,000
loans
entered
foreclosure
between
October
and
November,
which
is
15%
below
2019
levels
but
the
highest
two-month
total
in
more
than
five
years.

Active
foreclosure
inventory
is
up
20%
from
a
year
earlier,
and
October’s
7,700
foreclosure
sales
marked
a
five-year
high,
although
it’s
still
40%
below
pre-pandemic
levels.

FHA
and
VA
loans
are
driving
the
increase,
accounting
for
85%
of
new
starts
and
nearly
all
growth
in
active
cases
and
sales.
FHA
foreclosures
are
up
about
30,000
from
last
year,
while
VA
foreclosures
have
risen
by
roughly
12,000.