Mortgage Delinquency Rates Surge for Lower-Income Households

Echoes of the 2008 housing crisis emerge as financial distress deepens for households in lower-income areas

Published on Feb. 14, 2026

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According to data from the Federal Reserve Bank of New York, mortgage delinquency rates for lower-income households have surged, jumping from 0.5% in 2021 to nearly 3% by the end of 2025. Meanwhile, higher-income households are maintaining historically lower delinquency rates, highlighting the growing economic divide. Experts warn this could be a sign of a broader economic slowdown, as worsening regional labor markets make it difficult for people to keep up with mortgage payments.

Why it matters

The growing mortgage delinquency rates among lower-income households echo the 2008 housing crisis, raising concerns about the stability of the housing market and the broader economy. This trend disproportionately impacts vulnerable populations, potentially exacerbating existing economic disparities.

The details

The Federal Reserve Bank of New York's Center for Microeconomic Data reports that the 90-plus-day mortgage delinquency rate for families in the lowest-income bracket jumped from 0.5% in 2021 to nearly 3% by the end of 2025. Meanwhile, higher-income households are maintaining 'historically lower delinquency rates.' Experts attribute this to worsening regional labor markets, with the number of job openings decreasing by nearly 1 million over the last year, leading to increased competition for the remaining roles.

  • The mortgage delinquency data is from the fourth quarter of 2025.
  • The number of job openings decreased by nearly 1 million over the last year, according to the Bureau of Labor Statistics report earlier this month.

The players

Michelle Singletary

A Washington Post financial advice columnist who warned about the echoes of the 2008 housing crisis in the current economic climate.

Federal Reserve Bank of New York

The organization that released the Household Debt and Credit report for the fourth quarter of 2025, which revealed the surge in mortgage delinquency rates for lower-income households.

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What they’re saying

“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.”

— Michelle Singletary, Washington Post financial advice columnist (Washington Post)

“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.”

— Michelle Singletary, Washington Post financial advice columnist (Washington Post)

The takeaway

The surge in mortgage delinquency rates among lower-income households is a concerning echo of the 2008 housing crisis, highlighting the growing economic divide and the potential for a broader economic slowdown. This trend disproportionately impacts vulnerable populations and underscores the need for policymakers to address the underlying issues driving this crisis.