VantageScore CreditGauge: Mortgage Credit Delinquencies Rise in February

April 7, 2025 |By Anneliese Mahoney-amahoney@mba.org

(Image courtesy of VantageScore)

VantageScore, San Francisco, released its CreditGauge for February, finding mortgage credit delinquencies worsened year-over-year.

Mortgage credit delinquencies in the 30-59 days-past-due category were 1.1% in February, compared with 1.04% in February 2024 and .87% in January. Looking at 13-month delinquency rate trends, they’re at the highest level for that stage since early 2024.

In the 60-89 days-past-due category, at .38%, they were flat from January and up from .34% in February 2024. They were near flat in the 90-119 days-past-due category both year-over-year and month-over-month.

In February, the average mortgage balance rose $7,361, or 2.8% year over-year-year, and rose $1,197 month-over-month, potentially influenced by larger loan amounts and elevated mortgage rates. The mortgage balance-to-loan ratio dipped to 80.18%, indicated a stable pace of payments, VantageScore said.

Mortgage originations declined across all generations month-over-month. But, year over-year they increased for Gen X and Boomers, declined for Gen Z and were flat for Millennials and the Silent Generation.

The average VantageScore 4.0 Credit Score is at 701, after remaining at 702 for the past 11 months. However, the release noted that decline was driven in part by the resumption of student loan reporting, which led to an increase in overall late-stage delinquencies.

And, the auto loan sector in particular is stressed, with increases in delinquencies across all days-past-due categories, both year-over-year and when compared to pre-pandemic norms.

“Borrowers are making tough choices to prioritize their debt obligations and auto loans are decreasing in priority. Nationwide, the average VantageScore dropped by one point,” said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. “It’s unusual to see a decline of this size, and we attribute the change to the increased demands of car loan balances and student debt repayment.”