Mortgage Delinquencies Jump As Early-Stage Credit Stress Broadens

New VantageScore data shows a 30.9% year-over-year increase in early-stage mortgage delinquencies as household budgets face continued pressure from high borrowing costs.

The American consumer entered 2026 carrying record-high average credit balances, and the latest data suggests that even traditionally stable sectors like the mortgage market are feeling the weight. According to the January 2026 VantageScore CreditGauge report, early-stage mortgage delinquencies — those between 30 and 59 days past due — surged by 30.9% compared to the same period last year.

While mortgage performance has historically remained more resilient than unsecured debt, this double-digit jump reflects a broadening of credit stress across a wider range of borrowers. A TransUnion report indicates that the average mortgage balance now sits at approximately $259,562, a 3% increase from 2024.

The spike in early-stage mortgage delinquency is part of a larger trend in credit behaviors.

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

Other credit products are seeing similar, if slightly less aggressive, upward movements.

TransUnion reported that credit card delinquencies (90+ days past due) rose to 2.58%, while unsecured personal loan delinquencies (60+ days past due) climbed to 3.99% from 3.57% a year earlier — the largest year-over-year increase since early 2023. Auto loan delinquencies hit 1.50%, with used vehicles driving much of the deterioration.

The VantageScore report also highlights a growing divide in credit performance. While super-prime borrowers maintain strong repayment records, the subprime and near-prime segments are experiencing more acute pressure.

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