From Intercontinental Exchange: ICE First Look at Mortgage Performance: Increased Refinance Activity Drives Mortgage Prepayments to 3.5-Year High

Intercontinental Exchange, Inc. (NYSE:ICE) ... oday released the October 2025 ICE First Look at mortgage delinquency, foreclosure and prepayment trends.

“Softening mortgage rates expanded the pool of refinance candidates in October, pushing prepayments to their highest level in three and a half years,” said Andy Walden, Head of Mortgage and Housing Market Research at ICE. “This trend was largely driven by people who purchased homes at elevated rates in recent years seizing the opportunity to lower their monthly payments.”

“Overall mortgage health remains solid, with continued improvement in delinquency rates across all stages,” continued Walden. “While foreclosure activity has ticked up, levels remain historically low. This uptick is driven by a rise in FHA foreclosures along with the resumption in VA foreclosures following last year's moratorium."

Key takeaways from this month’s findings include:

• Delinquencies improved: The national delinquency rate fell by 7 basis points (bps) in October to 3.34%. This is down 11 bps from the same time last year and 53 bps below the October 2019 pre-pandemic benchmark.

• Broad strength in delinquency rates: Performance improved across the board, with both early-stage (30-day) and late-stage (90+ day) delinquencies declining during the month.

• Prepayments reached a multi-year high: The single month mortality (SMM) rate, which tracks prepayments, rose by 27 bps in October to 1.01%. This marks the highest level in 3.5 years and an increase of 16 bps from last year when interest rates were at similar levels.

• Foreclosure activity trending upward: Although October foreclosure starts slowed by 9.8% from the prior month, the overall trend continues to rise. Foreclosure inventory is up by 37,000 (+19%) year over year, and foreclosure sales have increased by 1,900 (+32%) from last year's levels.

• Government loans driving foreclosure growth: While foreclosure activity remains muted by historical standards, the number of loans in active foreclosure hit its highest level since early 2023, driven by a notable rise in FHA foreclosures (+50% YoY) along with a resumption of VA activity following last year's moratorium.
emphasis added

Click on graph for larger image.

Here is a table from ICE.

Beige Book - November 2025

Economic activity was little changed since the previous report, according to most of the twelve Federal Reserve Districts, though two Districts noted a modest decline and one reported modest growth. Overall consumer spending declined further, while higher-end retail spending remained resilient. Some retailers noted a negative impact on consumer purchases from the government shutdown, and auto dealers saw declines in EV sales following the expiration of the federal tax credit. Reports of travel and tourism activity reflected little change in recent weeks, with some contacts noting cautious discretionary spending among consumers. Manufacturing activity increased somewhat, according to most Districts, though tariffs and tariff uncertainty remained a headwind. Revenues in the nonfinancial services sector were mostly flat to down, and reports of loan demand were mixed. Some Districts reported declines in residential construction, while others said it was unchanged, and home sales activity varied. A few Districts noted ongoing recovery in the office real estate market. Conditions in the agriculture and energy sectors were largely stable, though some contacts cited challenges from the low-price environment for oil and for some crops. Community organizations saw increased demand for food assistance, due in part to disruptions in SNAP benefits during the government shutdown. Outlooks were largely unchanged overall. Some contacts noted an increased risk of slower activity in coming months, while some optimism was noted among manufacturers.

Labor Markets

Employment declined slightly over the current period with around half of Districts noting weaker labor demand. Despite an uptick in layoff announcements, more Districts reported contacts limiting headcounts using hiring freezes, replacement-only hiring, and attrition than through layoffs. In addition, several employers adjusted hours worked to accommodate higher or lower than expected business volume instead of adjusting the number of employees. A few firms noted that artificial intelligence replaced entry-level positions or made existing workers productive enough to curb new hiring. Across most Districts, employers had an easier time finding workers, but there were still pockets of difficulty related to certain skilled positions and fewer immigrant workers. Wages generally grew at a modest pace; however, some sectors such as manufacturing, construction, and health care experienced more moderate wage pressure because of a tighter labor supply. Furthermore, rising health insurance premiums continue to put upward pressure on labor costs.

Prices

Prices rose moderately during the reporting period. Input cost pressures were widespread in manufacturing and retail, largely reflecting tariff-induced increases. Some Districts noted rising costs for insurance, utilities, technology, and health care. The extent of passthrough of higher input costs to customers varied, and depended upon demand, competitive pressures, price sensitivity of consumers, and pushback from clients. There were multiple reports of margin compression or firms facing financial strain stemming from tariffs. Prices declined for certain materials, which firms attributed to sluggish demand, deferred tariff implementation, or reduced tariff rates. Looking ahead, contacts largely anticipate upward cost pressures to persist but plans to raise prices in the near term were mixed.
emphasis added

Today, in the Calculated Risk Real Estate Newsletter: Freddie Mac House Price Index Up 1.0% Year-over-Year in September

A brief excerpt:

Freddie Mac reported that its “National” Home Price Index (FMHPI) increased 0.13% month-over-month (MoM) on a seasonally adjusted (SA) basis in October.

On a year-over-year (YoY) basis, the National FMHPI was up 1.0% in October, down from up 1.1% YoY in September. The YoY increase peaked at 19.2% in July 2021, and for this cycle, and previously bottomed at up 1.1% YoY in April 2023. The YoY change in October is a new cycle low. ...

As of October, 26 states and D.C. were below their previous peaks, Seasonally Adjusted. The largest seasonally adjusted declines from the recent peaks are in D.C. (-3.2%), Florida (-3.0%) and Texas (-2.5%).

For cities (Core-based Statistical Areas, CBSA), 200 of the 387 CBSAs are below their previous peaks.

Here are the 30 cities with the largest declines from the peak, seasonally adjusted. Punta Gorda has passed Austin as the worst performing city. Note that 5 of the 7 cities with the largest price declines are in Florida.

Florida has the largest number of CBSAs on the list and Texas has the 2nd most.

There is much more in the article!

The DOL reported:

In the week ending November 22, the advance figure for seasonally adjusted initial claims was 216,000, a decrease of 6,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 220,000 to 222,000. The 4-week moving average was 223,750, a decrease of 1,000 from the previous week's revised average. The previous week's average was revised up by 500 from 224,250 to 224,750.
emphasis added

The following graph shows the 4-week moving average of weekly claims since 1971.

Click on graph for larger image.

The dashed line on the graph is the current 4-week average. The four-week average of weekly unemployment claims decreased to 223,750.

Note: Mortgage rates are from MortgageNewsDaily.com and are for top tier scenarios.

Wednesday:
• At 7:00 AM ET, The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

• At 8:30 AM, The initial weekly unemployment claims report will be released.  

• Also at 8:30 AM, Durable Goods Orders for September from the Census Bureau.

• At 9:45 AM, Chicago Purchasing Managers Index for November. 

• At 2:00 PM, the Federal Reserve Beige Book, an informal review by the Federal Reserve Banks of current economic conditions in their Districts.

On a monthly basis, retail sales increased 0.2% from August to September (seasonally adjusted), and sales were up 4.3 percent from September 2024.

From the Census Bureau report:

dvance estimates of U.S. retail and food services sales for September 2025, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $733.3 billion, up 0.2 percent from the previous month, and up 4.3 percent from September 2024. ... The July 2025 to August 2025 percent change was unrevised from up 0.6 percent.
emphasis added

Click on graph for larger image.

This graph shows retail sales since 1992. This is monthly retail sales and food service, seasonally adjusted (total and ex-gasoline).

Retail sales ex-gasoline was unchanged in September.

The second graph shows the year-over-year change in retail sales and food service (ex-gasoline) since 1993.

Retail and Food service sales, ex-gasoline, increased by 4.4% on a YoY basis.

The change in sales in September were below expectations, however, the previous two months were revised up slightly.

Today, in the Calculated Risk Real Estate Newsletter: FHFA Announces Baseline Conforming Loan Limit Will Increase to $832,750 in 2026

A brief excerpt:

After the release of the FHFA house price index for September this morning, the FHFA released the conforming loan limits for 2026.

From the FHFA: FHFA Announces Conforming Loan Limit Values for 2025

U.S. Federal Housing (FHFA) today announced the conforming loan limit values (CLLs) for mortgages Fannie Mae and Freddie Mac (the Enterprises) will acquire in 2026. In most of the United States, the 2026 CLL value for one-unit properties will be $832,750, an increase of $26,250 from 2025. ….

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit will be higher than the baseline loan limit. HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting the ceiling at 150 percent of the baseline limit. Median home values generally increased in high-cost areas in 2025, which increased their CLL values. The new ceiling loan limit for one-unit properties will be $1,249,125, which is 150 percent of $832,750

Note that there are different loan limits for various geographical areas. There are also different loan limits depending on the number of units (from 1 to 4 units). For example, next year the CLL is $832,750 for one-unit properties in low-cost areas. The four-unit limit is $1,601,750.

For high-cost areas like Los Angeles County, the CLL is $1,249,125 for one-unit properties (50% higher than the baseline CLL) and the four-unit limit is $2,402,625.

There is more in the article.

From the NAR: NAR Pending Home Sales Report Shows 1.9% Increase in October

Pending home sales in October increased by 1.9% from the prior month and fell 0.4% year over year, according to the National Association of REALTORS® Pending Home Sales Report. ...

Month-Over-Month
1.9% increase in pending home sales
Gains in the Northeast, Midwest and South; decline in the West

Year Over Year
0.4% decrease in pending home sales
Gains in the Midwest and South; decline in the Northeast and West
emphasis added

Note: Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in November and December.

Today, in the Calculated Risk Real Estate Newsletter: Case-Shiller: National House Price Index Up 1.3% year-over-year in September

Excerpt:

S&P/Case-Shiller released the monthly Home Price Indices for September (”September” is a 3-month average of July, August and September closing prices). July closing prices include some contracts signed in May, so there is a significant lag to this data. Here is a graph of the month-over-month (MoM) change in the Case-Shiller National Index Seasonally Adjusted (SA).

This is the 2nd consecutive month with a slight MoM increase seasonally adjusted.

There is much more in the article.

S&P/Case-Shiller released the monthly Home Price Indices for September ("September" is a 3-month average of July, August and September closing prices).

This release includes prices for 20 individual cities, two composite indices (for 10 cities and 20 cities) and the monthly National index.

From S&P S&P Cotality Case-Shiller Index Records Annual Gain in September 2025

• The S&P Cotality Case-Shiller U.S. National Home Price NSA Index posted a 1.3% annual gain for September, down from a 1.4% rise in the previous month.

• Inflation outpaced home prices for a fourth straight month, with September’s CPI running 1.7 percentage points above housing appreciation—the widest gap since the measures began diverging in June.

• All 20 metros recorded month-over-month declines before seasonal adjustment in September, underscoring broad-based weakening as elevated mortgage rates weigh on affordability and demand.

S&P Dow Jones Indices (S&P DJI) today released the September 2025 results for the S&P Cotality Case-Shiller Indices.

Please note that September 2025 transaction records for Wayne County, MI, are delayed at the local recording office. Since Wayne is the most populous county in the Detroit metro area, Cotality is not able to generate a valid September 2025 update of the Detroit S&P Cotality Case-Shiller Index before the November 25, 2025, release date. ...

"The housing market's deceleration accelerated in September, with the National Composite posting just a 1.3% annual gain—the weakest performance since mid-2023,” said Nicholas Godec, CFA, CAIA, CIPM, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices. “This marks a continued slide from August’s 1.4% increase and represents a stark contrast to the double-digit gains that characterized the early post-pandemic era. National home prices continued trailing inflation, with September’s CPI running 1.7 percentage points ahead of housing appreciation. This marks the widest gap between inflation and home-price growth since the two measures diverged in June, with the spread continuing to widen each month.

“Regional performance reveals a tale of two markets. Chicago continues to lead with a 5.5% annual gain, followed by New York at 5.2% and Boston at 4.1%. These Northeastern and Midwestern metros have sustained momentum even as broader market conditions soften. At the opposite extreme, Tampa posted a 4.1% annual decline—the sharpest drop among tracked metros and its 11th consecutive month of negative annual returns. Phoenix (-2.0%), Dallas (-1.3%), and Miami (-1.3%) likewise remained in negative territory, highlighting particular weakness in Sun Belt markets that experienced the most dramatic pandemic-era price surges.
...
The S&P Cotality Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 1.3% annual gain for September, down from a 1.4% rise in the previous month. The 10-City Composite showed an annual increase of 2.0%, down from a 2.1% increase in the previous month. The 20-City Composite posted a year-over-year increase of 1.4%, down from a 1.6% increase in the previous month.
...
The pre-seasonally adjusted U.S. National, 10-City Composite, and 20-City Composite Indices continued to report negative month-over-month changes in September, posting -0.3% for the U.S. National Index and -0.5% for both the 10-City and 20-City Composite Indices.

After seasonal adjustment, the U.S. National and 10-City Composite Indices reported a monthly increase of 0.2% and the 20-City Composite Indices posted a month-over-month gain of 0.1%. emphasis added

Click on graph for larger image.

The first graph shows the nominal seasonally adjusted Composite 10, Composite 20 and National indices (the Composite 20 was started in January 2000).

The Composite 10 index was up 0.2% in September (SA).  The Composite 20 index was up 0.1% (SA) in September.

The National index was up 0.2% (SA) in September.

The second graph shows the year-over-year change in all three indices.

The Composite 10 NSA was up 2.0% year-over-year.  The Composite 20 NSA was up 1.4% year-over-year.

The National index NSA was up 1.3% year-over-year.

Annual price changes were below expectations.  I'll have more later.

Note: Mortgage rates are from MortgageNewsDaily.com and are for top tier scenarios.

Tuesday:
• At 8:30 AM ET, The Producer Price Index for September from the BLS. 

• At 9:00 AM, S&P/Case-Shiller House Price Index for September.

• Also at 9:00 AM, FHFA House Price Index for September. This was originally a GSE only repeat sales, however there is also an expanded index. The Conforming loan limits for next year will also be announced.

• At 10:00 AM, Richmond Fed Survey of Manufacturing Activity for November. This is the last of the regional Fed manufacturing surveys for November.

• Also at 10:00 AM, Pending Home Sales Index for October.

From the U.S. Courts: Bankruptcy Filings Increase 10.6 Percent

Personal and business bankruptcy filings increased 10.6 percent in the twelve-month period ending Sept. 30, 2025, compared with the previous year.

According to statistics released by the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 557,376 in the year ending September 2025, compared with 504,112 cases in the previous year.

Business filings rose 5.6 percent, from 22,762 to 24,039 in the year ending Sept. 30, 2025. Non-business bankruptcy filings increased 10.8 percent to 533,337, compared with 481,350 in the previous year.

Still fairly low.

Today, in the CalculatedRisk Real Estate Newsletter: Every Housing Down Cycle is "unhappy in its own way"

Excerpt:

“All happy families are alike; every unhappy family is unhappy in its own way.” Leo Tolstoy, Anna Karenina

Maybe we could say that all housing booms look alike, but every down cycle is “unhappy in its own way.”

In March 2022, I wrote Don't Compare the Current Housing Boom to the Bubble and Bust. Instead, I suggested a more similar period was the late ‘70s to early ‘80s.

It is natural to compare the current housing boom to the mid-00s housing bubble. The bubble and subsequent bust are part of our collective memories. And graphs of nominal house prices and price-to-rent ratios look eerily similar to the housing bubble.

However, there are significant differences. First, lending has been reasonably solid during the current boom, whereas in the mid-00s, underwriting standards were almost non-existent (“fog a mirror, get a loan”). And demographics are much more favorable today than in the mid-00s.

A much more similar period to today is the late ‘70s and early ‘80s. House prices were increasing sharply. Demographics were very favorable for homebuying as the baby boomers moved into the first-time homebuying age group (similar to the millennials now). And inflation picked up from an already elevated level due to the second oil embargo in 1979, followed by the Iran-Iraq war in 1980, driving up costs.

Sure enough, there hasn’t been a national crash in house prices. However, although there are similarities to the late ‘70s / early ‘80s period, there also significant differences. The most obvious difference is the sharp slowdown in population growth and immigration. The population and workforce were expanding sharply in the early ‘80s.

There is much more in the article.

Altos reports that active single-family inventory was down 1.1% week-over-week.  Inventory usually starts to decline in the fall and then declines sharply during the holiday season.
The first graph shows the seasonal pattern for active single-family inventory since 2015.
Click on graph for larger image.

The red line is for 2025.  The black line is for 2019.  
Inventory was up 15.5% compared to the same week in 2024 (last week it was up 16.3%), and down 4.7% compared to the same week in 2019 (last week it was down 5.3%). 
Inventory started 2025 down 22% compared to 2019.  Inventory has closed most of that gap, but it appears inventory will still be below 2019 levels at the end of 2025.
This second inventory graph is courtesy of Altos Research.
As of November 21st, inventory was at 830 thousand (7-day average), compared to 840 thousand the prior week.  
Mike Simonsen discusses this data and much more regularly on YouTube

Weekend:
• Schedule for Week of November 23, 2025

Monday:
• At 8:30 AM ET, Chicago Fed National Activity Index for October. This is a composite index of other data.

• At 10:30 AM, Dallas Fed Survey of Manufacturing Activity for November.

From CNBC: Pre-Market Data and Bloomberg futures S&P 500 are up 41 and DOW futures are up 215 (fair value).

Oil prices were down over the last week with WTI futures at $58.06 per barrel and Brent at $62.56 per barrel. A year ago, WTI was at $72, and Brent was at $76 - so WTI oil prices are down about 19% year-over-year.

Here is a graph from Gasbuddy.com for nationwide gasoline prices. Nationally prices are at $3.07 per gallon. A year ago, prices were at $3.04 per gallon, so gasoline prices are up $0.03 year-over-year.

This is something I check occasionally.

The Department of Transportation (DOT) reported:

Travel on all roads and streets changed by +2.0% (+5.4 billion vehicle miles) for September 2025 as compared with September 2024. Travel for the month is estimated to be 278.3 billion vehicle miles.

The seasonally adjusted vehicle miles traveled for September 2025 is 277.1 billion miles, a +1.9% ( 5.0 billion vehicle miles) change over September 2024. It also represents a 0.2% change (0.6 billion vehicle miles) compared with August 2025.

Cumulative Travel for 2025 changed by +1.0% (+25.1 billion vehicle miles). The cumulative estimate for the year is 2,492.0 billion vehicle miles of travel.
emphasis added

Click on graph for larger image.

This graph shows the monthly total vehicle miles driven, seasonally adjusted.

Miles driven declined sharply in March 2020 and really collapsed in April 2020.  
Miles driven are now at pre-pandemic levels.

At the Calculated Risk Real Estate Newsletter this week:

Click on graph for larger image.

• NAR: Existing-Home Sales Increased to 4.10 million SAAR in October

• Lawler: Early Read on Existing Home Sales in October

• California October Home Sales "Highest Level Since February"; 4th Look at Local Markets

• 3rd Look at Local Housing Markets in October

This is usually published 4 to 6 times a week and provides more in-depth analysis of the housing market.

Happy Thanksgiving!
Special Note: There is still uncertainty on when some economic reports will be released.  Items listed in RED have not been announced and will likely not be released this week.
The key reports this week include the advance estimate of Q3 GDP, September New Home Sales and Retail Sales.

Other key indicators include the September Case-Shiller and FHFA house price indexes, and September Personal Income & Outlays (and PCE).


----- Monday, November 24th -----
8:30 AM ET: Chicago Fed National Activity Index for October. This is a composite index of other data.

10:30 AM: Dallas Fed Survey of Manufacturing Activity for November.

----- Tuesday, November 25th -----
8:30 AM: The Producer Price Index for September from the BLS. 

9:00 AM ET: S&P/Case-Shiller House Price Index for September.

This graph shows graph shows the Year over year change in the seasonally adjusted National Index, Composite 10 and Composite 20 indexes through the most recent report (the Composite 20 was started in January 2000).

The National index was up 1.5% YoY in August and is expected to increase about the same in September.

9:00 AM: FHFA House Price Index for September. This was originally a GSE only repeat sales, however there is also an expanded index. The Conforming loan limits for next year will also be announced.

8:30 AM ET: Retail sales for September will be released.  

This graph shows retail sales since 1992. This is monthly retail sales and food service, seasonally adjusted (total and ex-gasoline).

10:00 AM: Richmond Fed Survey of Manufacturing Activity for November. This is the last of the regional Fed manufacturing surveys for November.

10:00 AM: Pending Home Sales Index for October.

----- Wednesday, November 26th -----
7:00 AM ET: The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

8:30 AM: The initial weekly unemployment claims report will be released.  

8:30 AM: Gross Domestic Product (Advance Estimate), 3rd Quarter 2025.

8:30 AM: Durable Goods Orders for September from the Census Bureau.

9:45 AM: Chicago Purchasing Managers Index for November. 

10:00 AM: New Home Sales for September from the Census Bureau.

This graph shows New Home Sales since 1963. The dashed line is the sales rate for last month.

10:00 AM: Personal Income and Outlays, September 2025.

2:00 PM: the Federal Reserve Beige Book, an informal review by the Federal Reserve Banks of current economic conditions in their Districts.

----- Thursday, November 27th -----
All US markets will be closed in observance of the Thanksgiving Day Holiday.

----- Friday, November 28th -----
The NYSE and the NASDAQ will close early at 1:00 PM ET.

From BofA:

Since our last weekly publication, 3Q GDP tracking remains unchanged at 2.8% q/q saar. [November 14th estimate]
emphasis added

From Goldman:

We boosted our Q3 GDP tracking estimate by 0.1pp to +3.8% (quarter-over-quarter annualized). Our Q3 domestic final sales estimate stands at +2.7%. [November 19th estimate]

And from the Atlanta Fed: GDPNow

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2025 is 4.2 percent on November 21, unchanged from November 19 after rounding. After recent releases from the US Census Bureau, the US Bureau of Labor Statistics, and the National Association of Realtors, a slight decrease in the nowcast of third-quarter real personal consumption expenditures growth was offset by an increase in the nowcast of third-quarter real gross private domestic investment growth from 4.8 percent to 4.9 percent. [November 21st estimate]

What this means: On a weekly basis, Realtor.com reports the year-over-year change in active inventory, new listings and median prices. On a monthly basis, they report total inventory. For October, Realtor.com reported active inventory was up 15.3% YoY, but still down 13.2% compared to the 2017 to 2019 same month levels. 
Here is their weekly report: Weekly Housing Trends: U.S. Market Update (Week Ending Nov. 15, 2025)

• Active inventory climbed 12.6% year over year

The number of homes active on the market climbed 12.6% year-over-year, as the streak of annual gains stretched past two years in length. There were about 1.1 million homes for sale last week, marking the 29th week in a row over the million-listing threshold. Active inventory is growing due to both new listings hitting the market, but mostly listings taking longer to sell in this weak 2025 sales year.

• New listings—a measure of sellers putting homes up for sale—rose 1.7% year over year

New listings edged up on an annual basis, the second straight week of gains and a return to more typical levels after last week’s surge. Mortgage rates held in the low 6.2s range last week the low-6% range, which may be enticing some homeowners to make a move.

• The median listing price fell 0.4% year-over-year

he median list price dropped compared to the same week one year ago. Adjusting for home size, price per square foot fell 1.0% year-over-year, dropping for the 11th consecutive week. Price per square foot grew steadily for almost two years, but the weak sales activity has finally caught up and shaken underlying home values despite stable prices.