Summary
Property taxes and homeowners insurance costs are increasing, particularly in the Midwest and South, leading to more mortgage payment difficulties for homeowners. Escrow costs are also rising, which could further challenge homeowners' ability to manage mortgage payments. Some states experiencing the highest cost increases are Florida, Colorado, and several others vulnerable to natural disasters.
Key Facts
- Rising escrow costs could increase challenges for homeowners in paying mortgages.
- Property taxes and insurance premiums have increased significantly since 2019.
- The U.S. mortgage delinquency rate has slightly increased from 2.9% to 3% between 2025 and September 2025.
- Serious mortgage delinquencies rose from 0.9% to 1% during the same period.
- Some areas, like San Angelo, Odessa in Texas, and several locations in Florida, saw significant delinquency rate increases.
- Homeowners in the South and Midwest face the fastest-rising costs, particularly in states like Colorado and Florida.
- Escrow accounts handle property costs like taxes and insurance, and if these rise, payment demands can increase.
- American homeowners are now paying on average 45% more in escrow compared to five years ago.
