Foreclosure Prevention, Refinance, and Federal Property Manager’s Report – July 2025
Industry Update
October 9, 2025
Source: Federal Housing Finance Agency
July 2025 Highlights – Foreclosure Prevention
The Enterprises’ Foreclosure Prevention Actions:
The Enterprises completed 17,929 foreclosure prevention actions in July 2025, bringing the total to 7,231,733 since the start of the conservatorships in September 2008. Approximately 39 percent of these actions have been permanent loan modifications.
There were 8,089 permanent loan modifications in July 2025, bringing the total to 2,796,127 since the conservatorships began in September 2008.
Approximately 34 percent of loan modifications in July involved extend term only. Modifications with principal forbearance accounted for 65 percent of all loan modifications during the month.
The number of borrowers who received payment deferrals after completing a forbearance plan increased from 5,735 in June to 6,275 in July 2025.
Initiated forbearance plans increased from 7,145 in June to 8,030 in July 2025. However, the total number of loans in forbearance decreased from 34,713 at the end of June to 33,927 at the end of July 2025, representing approximately 0.11 percent of the total loans serviced and 6.6 percent of the total delinquent loans.
The Enterprises’ Mortgage Performance:
The 30-59-day delinquency rate decreased to 0.92 percent while the serious delinquency rate remained steady at 0.54 percent at the end of July 2025.
The Enterprises’ Foreclosures:
Third-party and foreclosure sales decreased slightly to 1,091 while foreclosure starts increased 11 percent to 8,073 in July 2025.
July 2025 Highlights – Refinance Activities
Total refinance volume decreased in July 2025 as mortgage rates remained elevated in June. However, mortgage rates improved slightly in July, with the average interest rate on a 30-year fixed rate mortgage falling to 6.72 percent from 6.82 percent in June.
Cash-out refinances as a percentage of refinances increased from 62 percent in June to 65 percent in July 2025 after rising as high as 82 percent over the last three years.
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