More Low-Income Americans Are Defaulting on Mortgages
Summary
Mortgage delinquency rates are rising, especially in lower-income areas in the United States. The New York Federal Reserve's data shows that borrowers in these areas are having more trouble keeping up with their mortgage payments, while those in higher-income areas show lower delinquency rates.Key Facts
- Borrowers in low-income ZIP codes are leading the increase in mortgage delinquency rates.
- Mortgage delinquency rates are close to historic lows but have been rising over the past few years.
- About 1.3 percent of mortgages were seriously delinquent in late 2025.
- Low-income households face the biggest financial challenges and risk losing their homes.
- The New York Fed used anonymized credit report data to study delinquency trends.
- In low-income areas, 90-day delinquency rates increased from 0.5 percent in 2021 to nearly 3.0 percent recently.
- Rising delinquency rates are linked to higher unemployment and housing market changes, such as falling home prices.
- President Trump has made addressing high housing costs a focus during his second term.
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