The mortgage delinquencies rate dipped in July to 3.27 percent, eight basis points lower than June and nine points below July 2024, according to the latest Intercontinental Exchange report. That figure remains 58 basis points under its pre-pandemic level. At the same time, foreclosure starts edged up 4.3 percent month-over-month to 32,000 filings, while foreclosure sales rose nearly 10 percent from June to 6,900 properties sold. The mixed signals underscore a housing market that is largely stable, with pockets of strain for some homeowners. mortgage delinquencies
Homeowners nationwide saw fewer late payments in July, continuing a steady decline that began after mortgage forbearance programs ended. Mortgages at least 30 days past due fell to levels unseen since early 2020, reflecting resumed wage growth and household budgets strengthened by pandemic savings. Despite the drop, banks and servicers reported a year-over-year increase in the number of properties entering the foreclosure process. Foreclosure starts have climbed annually for eight straight months, and foreclosure sales have outpaced their year-ago tallies for each of the past five months.
Delinquencies Remain Below Pre-Pandemic Levels
Mortgage delinquencies in California registered 2.16 percent in July, placing the state among the five lowest by non-current percentage nationwide. That rate is down from 2.21 percent in February 2024. Even with rising foreclosure activity, California homeowners continue to outperform their peers elsewhere. The state’s relatively low unemployment rate and modest decline in home values have helped borrowers keep up with mortgage obligations. According to Freddie Mac’s mortgage market survey, rates are expected to ease slightly by year-end, which may help further reduce late payments and stabilize housing costs.
Foreclosures Increase Amid Steady Delinquencies
Nationwide, foreclosure sales—properties sold at auction or through lender repossession—surged 25 percent year-over-year. That uptick follows a trend of gradually rising lender-initiated sales as pandemic-era safeguards wind down. Even so, the U.S. foreclosure rate remains about 35 percent below its pre-2020 norms. Analysts note that while early delinquency rates offer a forward look at potential risk, foreclosure starts and sales reflect the culmination of extended missed payments. As mortgage delinquencies remain low, experts predict only a modest rise in foreclosure activity over the next year.
Outlook for Homeowners and Market
With the probability of a recession in 2025 and 2026 remaining low, economists expect mortgage delinquencies to stay subdued over the next 18 months. Mortgage rates have already fallen roughly 25 basis points since early August, easing payment burdens for new borrowers and those refinancing existing loans. That relief should keep late payments in check even if home values soften in certain regions. Local homeowners in the San Gabriel Valley can take comfort that national trends favor market stability, but those facing financial strain should seek advice on loan modification or repayment plans sooner rather than later.
Community Impact and Resources
Lower delinquency rates benefit the wider community by reducing the risk of property abandonment and maintaining neighborhood home values. Local housing counselors offer workshops on budgeting, credit management and foreclosure prevention. Homeowners at risk of falling behind can visit the U.S. Department of Housing and Urban Development website or consult certified housing counselors for free guidance. Timely action can prevent a late payment from turning into a foreclosure sale.
