Consumer Credit Delinquencies Soar to 5-Year High

In January, consumer credit delinquencies climbed to their highest level in five years, according to the most recent data from VantageScore, a consumer credit-scoring system. National Mortgage Professional reports that this uptick signals a growing financial strain on borrowers, part of which can be attributed to mortgage debt. This has the potential to affect home sales since a rise in consumer credit delinquencies and increased debt burdens may limit borrower eligibility for a mortgage, and consumers’ restrained use of credit cards suggests they’re feeling cautious about their finances, so are less likely to commit to large purchases. 

Mortgage debt was the main culprit in driving up credit balances. Overall credit balances climbed to $105,700 in January, up $1,049 (+1.0%) from December 2024, marking a five-year high. Mortgages were the primary driver of this increase, as elevated home prices and high interest rates continued to weigh on consumers’ ability to pay down mortgage debt. Credit balances also rose by $1,350 (+1.3%) compared to January 2024. Read more