A new mortgage crisis is quietly hitting those who can least afford it [View all]
Source: Washington Post
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. Meanwhile, folks in the highest-income areas are doing just fine, maintaining “historically lower delinquency rates.”
When the Fed examined what might account for the disparities in mortgage performance, it concluded the job market could be a major contributor. Although the latest jobs report from the Labor Department shows some gains in January, the rebound was limited to just a few sectors, such as health care. Nationwide, unemployment is relatively low, but “worsening” regional labor markets are making it hard for people to keep up with their mortgage payments.
“Two-thirds of counties have seen their local unemployment rates rise, and 5 percent of the population lives in counties where unemployment rates have risen by more than 1.6 percentage points,” according to the New York Fed.
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.
Read more: https://www.washingtonpost.com/business/2026/02/14/mortgage-problems-delinquencies/
But hey, the Dow hit 50,000! If you have to work for a living, that's your problem.
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