Mortgage defaults level off in June, FHA new defaults down 15%

New mortgage default activity remained stable in June, with new defaults among Federal Housing Administration (FHA) borrowers falling 15% from a year earlier, marking the largest annual decline in more than four years. That’s according to Intercontinental Exchange’s (ICE) latest First Look Mortgage Performance report, which observed that overall mortgage performance remained strong during the month, although delinquencies ticked higher on a seasonal basis. “Early-stage delinquencies remain subdued, and while serious delinquencies including foreclosures have reached pre-pandemic levels, new default activity has leveled off in recent months — a positive sign,” Andy Walden, head of mortgage and housing market research at ICE, said in a statement. “New FHA defaults, which have been a focal point of market attention, were down 15% year over year in June. These trends are encouraging, even as the market continues to warrant close monitoring.” The report found that the overall delinquency rate remained well below pre-pandemic levels, at 3.55% compared to the 4.16% pre-pandemic benchmark in June 2019. Serious delinquencies, meaning loans 90 or more days past due but not in foreclosure, dec...