RISING MORTGAGE DELINQUENCIES: Millions of U.S. homeowners are facing financial distress due to
rising mortgage delinquencies,
particularly among low-income households, which surged to nearly 3% for
90-plus day delinquencies by late 2025. - Surging costs for home insurance, property taxes, and over $25 billion in household utility debt are creating a "perfect storm" for potential foreclosures
If not for this one industry, the U.S. labor market would look a lot worse
Washington Post financial advice columnist Michelle Singletary said echoes of the Republican-era 2008 housing crisis are creeping back into a new presidential administration.
“This week, there was yet another warning that many homeowners might be headed for trouble,” Singletary told the Post.
The Federal Reserve Bank of New York’s Center for Microeconomic Data
reports that mortgage delinquency rates for lower-income households are
surging, according tothe recently released Household Debt and Credit
report for the fourth quarter of 2025. . .As the New York Fed points out, ‘financial distress appears to be deepening for households in lower-income areas.’”
According to New York Fed data, the
90-plus-day mortgage delinquency rate for families in the lowest-income
bracket jumped from 0.5 percent in 2021 to nearly 3 percent by the end
of 2025. Meanwhile, folks in the highest-income areas are doing just fine, maintaining “historically lower delinquency rates.”
- “The number of job openings has trended down to 6.5 million, a decrease of nearly 1 million openings over the last year, the Bureau of Labor Statistics reported earlier this month.
- If you’re unemployed or looking to take on a second job, this data indicates there are fewer positions to apply for than there were a year ago, likely leading to more competition for the roles that remain,” Singletary said.
Count this as a potential “canary in the coal mine for a potential broader economic slowdown,” --- Singletary added.
“If you can’t find work or a stable job that keeps up with the cost of living, you can’t keep up with your mortgage payments.”
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