Housing affordability isn’t just an issue for would-be homebuyers, its also affecting a growing share of existing homeowners, according to new data.
New research from the credit scoring company VantageScore, noted that late-stage mortgage delinquencies — those with payments at least 90 days past due — rose 18.6% in December from a year earlier.
It noted that the share of mortgages at that stage of nonpayment remains small at about 0.2% — up from just under 0.17% in December 2024. The growth is occurring at a faster pace than for delinquencies involving other types of consumer credit, including auto loans, credit cards and personal loans, said Rikard Bandebo, Chief Strategy Officer and Chief Economist for VantageScore.
Compared with the nonpayment levels seen during the financial crisis in 2008 to 2010, “this is a considerably lower delinquency rate,” Bandebo said. “But it’s still a concerning sign that [delinquencies] are increasing.”
As of the third quarter last year, mortgage delinquencies of all stages were 1.78% of outstanding home loans, up from 1.74% a year earlier, according to the Federal Reserve Bank of St. Louis. In the first quarter of 2010, that share was 11.49%.
Delinquencies Could Total 1.5M
CNBC said that Americans owed $13.07 trillion on 86.67 million mortgages, also as of the third quarter of 2025, citing a LendingTree analysis of Federal Reserve Bank of New York data.
Based on these figures and the St. Louis Fed’s delinquencies data, the number of delinquent mortgages could be about 1.5 million, CNBC reported.
Th recent rise in delinquencies helped push the average VantageScore credit score down to 700 in December, a one-point decline from November and a two-point drop from a year earlier.
CNBC reported that affordability issues have taken center stage as households continue to struggle to absorb higher prices. Costs for everyday purchases have risen more than 25% since January 2020, according to the consumer price index.
CNBC said that many would-be homebuyers have been priced out of the market because of constraints on inventory, prices that have surged over the last five years, and elevated mortgage rates. Although the market shows some signs of easing, the median sale price of a single-family home was $409,500 in December, according to the National Association of Realtors.
Home Prices Take a Jump
That amount is down from the June 2025 high of $435,300, but it remains far above home prices heading into the pandemic. From January 2020 through November 2025, home prices jumped 54.5%, according to the S&P Cotality Case-Shiller U.S. National Home Price Index.
A new analysis from the Realtor.com economic research team looked at what it would take to return housing affordability to pre-pandemic levels. That’s when the typical mortgage payment consumed about 21% of the median household income, compared with more than 30% today, according to the research.
The analysis revealed that that one of three things would have to happen: mortgage rates would have to fall to about 2.65% from the current 6.16%; median household income would need to rise 56% to $132,171 from an estimated $84,763 currently; or home prices would need to fall 35% to a median of $273,000 from about $418,000 in 2025.
For potential homebuyers, rising delinquency rates may serve as a reminder to avoid buying a house they can’t afford, CNBC said.
“Just because a lender approves you for a certain amount doesn’t mean you should spend it,” said Certified Financial Planner Thomas Blackburn, a Partner, Vice President, and Senior Financial Planner with Mason & Associates in Newport News, Virginia.
Leave Room for Unknowns
“Their maximum is what they think you can bear, not what’s comfortable,” Blackburn said. “Leave room for the unknowns, for saving and for actually enjoying your life.”
CNBC noted that the general rule of thumb is to keep your mortgage payments — including property taxes and homeowners insurance — to no more than 28% of your income, although some advisors recommend an even lower cap to allow room for something unexpected.
“One expense people often underestimate is ongoing maintenance,” said CFP Kate Feeney, a Vice President and Wealth Advisor with Summit Place Financial Advisors in Summit, New Jersey.
“A simple rule of thumb is to set aside about 1% to 2% of the home’s value each year for repairs and upkeep,” Feeney said.
Don’t forget about emergency savings.
“Having three to six months of living expenses set aside provides flexibility and peace of mind, especially in the first year when unexpected costs tend to surface,” Feeney said.
The post Housing Affordability: It’s Not Just Hurting Buyers, More Mortgage Holders are Falling Behind first appeared on The MortgagePoint.
