Mortgage delinquencies rise for low-income Americans

Comments

• RamRabbit@lemmy.world ⁨1⁩ ⁨day⁩ ago

  That graph doesn’t have very many years on it; and half are COVID, which always makes me suspicious. Found one from FRED that shows things are pretty average:

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  • CombatWombatEsq@lemmy.world ⁨1⁩ ⁨day⁩ ago

    Yeah, the blog post the New York Fed released in conjunction with their quarterly report addresses this specifically in their closing paragraph:

    It is important to note that overall, mortgages continue to perform well by historical standards and have risen recently only after having reached artificially low levels during the pandemic due to the stimulus and forbearances available to borrowers at that time. On average, about 1.3 percent of mortgage balances became seriously delinquent during 2025—a share that looks very similar to the averages observed outside of the period around the Great Recession (when delinquencies exceeded 8 percent). Tight lending standards for mortgages have been a major contributor to this improvement; the median credit score of newly originated mortgages has remained persistently above 750 since 2009. Still, in lower-income areas and in areas experiencing worsening labor market or housing market conditions, we are seeing mortgage delinquencies grow at a fast pace.

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