National Mortgage Delinquency Rate Rose in August

The national mortgage delinquency rate increased to 3.53% as prepayment activity reached a 17-month low.

Updated on Sept. 28, 2026 in Residential

Isometric editorial illustration of a brass key sitting on a stack of timber blocks, symbolizing the national mortgage market trend. — The national mortgage delinquency rate increased to 3.53% in August 2026, as rising interest rates contributed to a 17-month low in prepayment activity. AI Illustration. Upload story photo >

Live Poll

Do you feel your personal financial health is getting better or worse than last year?

Data from Intercontinental Exchange shows that national mortgage delinquencies rose 14 basis points to 3.53% in August 2026. The increase in late payments was accompanied by a decline in prepayment speeds, which hit their lowest point in 17 months.

Why it matters

Rising interest rates have suppressed mortgage prepayment activity, while calendar effects contributed to the uptick in delinquency rates across the housing market.

The serious delinquency rate reached 1.04% of active loans, with the total number of serious delinquencies increasing by 11,000 to reach 574,000. Additionally, single-month mortality for mortgage prepayments fell 11 basis points to 0.64%.

The players

Intercontinental Exchange

This is a global provider of data, technology, and market infrastructure that tracks performance metrics for the United States mortgage market.

The details

While delinquency rates climbed, the market saw a 6% decline in foreclosure starts and a 2% drop in foreclosure sales from the previous month. Active foreclosure inventory rose by 2,000 loans, and prepayment rates for loans originated between 2023 and 2025 dropped to 0.91%.

August 2019 was used as the delinquency rate level for historical comparison.
February 2020 marked the highest pre-sale foreclosure inventory level reached.
November 2025 served as a comparison point for recent foreclosure inventory growth.
March 2026 was the period of peak prepayment rates for 2023-2025 originated loans.
August 2026 was the primary reporting period for the latest mortgage delinquency and prepayment data.

Culture Shift

Comparing current delinquency rates to the August 2019 mortgage delinquency environment provides necessary historical context for the recent rise in late payments. This framing highlights how housing market stability fluctuates in response to broader economic shifts.

Homeowners may face stricter lending criteria or higher costs for refinancing as prepayment activity slows down across the national market. Readers should assess their own mortgage terms against current interest rate environments to understand how these trends affect their household financial planning.

The takeaway

Homeowners currently holding loans should monitor their financial flexibility as delinquency rates show signs of incremental growth. Understanding the impact of interest rates on your mortgage can help in making informed decisions about long-term housing costs.