The Federal Housing Finance Agency (FHFA) has issued the October 2025 edition of the Prevention, Refinance, and Federal Property Manager’s Report, disclosing information about foreclosure prevention actions, foreclosure activity, loan modification results, and additional details.
In October 2025, the Enterprises carried out 17,032 actions aimed at preventing foreclosure, raising the cumulative total to 7,280,932 since conservatorships began in September 2008. Roughly 39% of these measures have involved permanent loan modifications.
In October 2025, there were 7,210 permanent loan modifications, which raised the total to 2,816,885 since the start of conservatorships in September 2008. In October, around 36% of loan modifications were solely for extending the term. During the month, modifications involving principal forbearance made up 64 percent of all loan modifications. After forbearance plan completion, the count of borrowers granted payment deferrals rose from 5,616 in September to 6,208 in October 2025.
The number of initiated forbearance plans increased from 7,863 in September to 17,075 in October 2025. By the end of October 2025, the total number of loans in forbearance rose from 33,360 at the end of September to 42,112. This accounted for about 0.14% of all serviced loans and 8.0% of all delinquent loans.
Additional Key Findings:
- The total volume of refinances increased in October 2025, propelled by the relatively lower mortgage rates in September compared to August. In October, mortgage rates continued to decline, with the average interest rate for a 30-year fixed mortgage dropping from 6.35% in September to 6.25%.
- After reaching a peak of 82% over the past three years, cash-out refinances as a proportion of total refinances fell from 55% in September to 38% in October 2025.
- As of the end of October 2025, the rate of delinquencies lasting 30 to 59 days dropped to 0.93%, while that of serious delinquencies held stable at 0.55%.
- In October 2025, third-party and foreclosure sales increased by 13% to reach 1,317, while foreclosure starts rose by 3% to a total of 9,255.
Forbearance Plans Inventory, Refi Trends & More
In October, the overall count of loans in forbearance plans increased by 26.2%. On October 31, 2025, the number of loans in forbearance reached 42,112, which accounted for about 0.14 percent of the Enterprises’ single-family conventional book of business. This figure was an increase from 33,360—or 0.11%—at the end of September 2025. About 1.4% of these loans have experienced forbearance lasting over 12 months.
The total volume of refinances increased in October 2025, spurred on by mortgage rates in September being lower in comparison to those in August. In October, mortgage rates continued their decline, with the average interest rate for a 30-year fixed-rate mortgage dropping from 6.35% in September to 6.25%.
The number of cash-out refinances relative to total refinances fell from 55% in September to 38% in October 2025, having reached a peak of 82% over the past three years. In October, the percentage of borrowers refinancing into 15-year mortgages fell to 17%, due to a reduction in the rate spread between 15-year and 30-year fixed-rate mortgages.
In reaction to the U.K. Brexit vote to exit the European Union, treasury rates declined as there was a worldwide movement toward the safety of government debt. As expectations grew for a Federal Reserve rate increase, mortgage rates climbed in November and December of 2016. In light of an economy that was strengthening, the Federal Reserve increased the target federal funds rate to 0.75% on December 14, 2016.
In 2017, mortgage rates declined as the Federal Reserve pursued a steady approach to normalize its benchmark rate. The target Federal Funds rate was increased to 1% on March 16, to 1.25% on June 15, and to 1.5% on December 14. In 2018, mortgage rates reached their peak as the target Federal Funds rate was raised incrementally each quarter to 1.75%, 2%, 2.25%, and 2.5%. The Federal Reserve anticipated continued steady growth of the US economy during that year.
In 2019, mortgage rates decreased as the effects of the China-US trade war on international trade began to slow economic growth. In 2020, mortgage rates kept decreasing as the target Federal Funds rate was lowered to nearly zero due to diminished economic activity caused by the COVID-19 pandemic. During Q3, mortgage rates surpassed 3% due to inflation worries. As the Federal Reserve finished a series of hikes to the target Federal Funds rate due to ongoing indications of inflation, mortgage rates kept climbing.
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