More People Are Falling Behind On Their Mortgage Payments

Key Takeaways

• The 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.

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.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.

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, from coffee to vet visits.

What This Means For The Economy

Rising mortgage delinquencies can signal broader financial stress and potential economic slowdown.

“The broad-based rise in early-stage credit delinquencies across VantageScore credit tiers underscores persistent macroeconomic pressures, particularly for more vulnerable borrowers,” Susan Fahy, chief digital, data and technology officer at VantageScore said in a press release. “Sustained cost pressures and interest rates may leave some consumers increasingly exposed to future economic shocks.”

The uptick in delinquencies could also be a red flag for the broader economy. Historically, bad things have happened when too many people stop paying their mortgages.

"This represents the most pronounced and broad-based deterioration across products, signaling gradually building repayment pressure in the housing segment," the report said.

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