Key Takeaways
\nThe number of households falling behind one or two months on their mortgage payments grew by 30.9% between January 2025 and January 2026, according to credit scoring company VantageScore.Rising living costs may be contributing to the uptick in delinquencies.The trend could be a sign that households and the broader economy are becoming more vulnerable to shocks.<\/p>\n
The number of homeowners beginning to fall behind on their payments rose by nearly a third over the last year, in a sign that the high cost of living is causing financial distress for more households.<\/p>\n
That’s according to a report from credit scoring company VantageScore Thursday, which said the number of people one to two months behind on their payments rose by 30.9% over the year in January.\n<\/p>\n
Though this still accounted for only 1.14% of borrowers, it was the most since the pandemic hit and a signal that more households are being stretched thin. Although inflation has fallen from its recent high in 2022, price increases for many necessities have remained high,\u00a0from coffee<\/a> to vet visits<\/a>.\n<\/p>\n What This Means For The Economy<\/p>\n Rising mortgage delinquencies can signal broader financial stress and potential economic slowdown.<\/p>\n \u201cThe broad-based rise in early-stage credit delinquencies across VantageScore credit tiers underscores persistent macroeconomic pressures, particularly for more vulnerable borrowers,\u201d Susan Fahy, chief digital, data and technology officer at VantageScore said in a press release. \u201cSustained cost pressures and interest rates may leave some consumers increasingly exposed to future economic shocks.\u201d\n<\/p>\n