Serious mortgage delinquencies are on the rise as homeowner stress spreads

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ICE Mortgage Technology, a figure that’s risen 25% in the last four months. Much of the increase comes from FHA loans, which are most often used by homebuyers with moderate credit scores and limited down payment savings.The uptick in seriously past-due loans doesn’t necessarily mean that more homeowners are defaulting. The number of new loans that have turned seriously delinquent in recent months has been relatively flat, according to the report. Rather, more homeowners in arrears are staying there by failing to “cure” their delinquencies through steps such as catching up on payments, modifying their loans, or reaching a forbearance agreement with their lenders.“These dynamics bear watching in the coming months, as default activity continues to trend off recent record lows,” Andy Walden, head of mortgage and housing market research at ICE, said in a statement.The ICE data is the latest sign that mortgage stress is growing for a subset of Americans. Data released this week by credit scoring company VantageScore showed that mortgage delinquency rates jumped across all stages in February compared to a year ago, led by an 18% rise in the rate of seriously delinquent borrowers, to 0.2%.“The broad-based increase across delinquency stages may reflect continued affordability pressures for homeowners, as elevated mortgage rates, rising insurance and broader household budget strain weigh on borrower repayment capacity,” the VantageScore report said.While mortgage delinquencies are on the rise, they remain far lower than during the financial crisis, which at its peak saw over 8% of borrowers land in seriously delinquent status. In many cases, past-due numbers are rising off of pandemic-era lows.Mortgage delinquency rates also remain lower than past-due rates on other types of debt, like auto loans and credit cards. As of February, those had serious delinquency rates of 0.32% and 0.28%, respectively, according to VantageScore data.Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.Sign up for the Mind Your Money newsletterClick here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and moreRead the latest financial and business news from Yahoo FinanceTerms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 66,168.07 -2,892.01 (-4.19%)^GSPC S&P 500 6,368.85 -108.31 (-1.67%)^IXIC NASDAQ Composite 20,948.36 -459.72 (-2.15%)^DJI Dow Jones Industrial Average 45,166.64 -793.47 (-1.73%)ARTL Artelo Biosciences, Inc. 10.54 +7.35 (+230.41%)PortfolioSign in to access your portfolioSign inTop gainersAGX Argan, Inc. 566.62 +155.77 (+37.91%)U Unity Software Inc. 19.45 +2.32 (+13.54%)ADV Advantage Solutions Inc. 25.57 +2.99 (+13.27%)ADMA ADMA Biologics, Inc. 9.25 +0.96 (+11.58%)MEOH Methanex Corporation 65.22 +5.76 (+9.69%)Top losersFLY Firefly Aerospace Inc. 23.71 -3.11 (-11.58%)YOU Clear Secure, Inc. 47.44 -5.96 (-11.16%)ASTS AST SpaceMobile, Inc. 78.67 -9.19 (-10.46%)HNGE Hinge Health, Inc. 36.25 -3.93 (-9.78%)ZETA Zeta Global Holdings Corp. 14.55 -1.53 (-9.51%)Most activeNVDA NVIDIA Corporation 167.52 -3.72 (-2.17%)GRAB Grab Holdings Limited 3.5700 -0.1400 (-3.77%)TSLA Tesla, Inc. 361.83 -10.28 (-2.76%)INTC Intel Corporation 43.13 -0.97 (-2.20%)NU Nu Holdings Ltd. 13.60 -0.42 (-3.00%)Top economic eventsEarnings eventsMy earnings eventsEarnings events