VantageScore: Consumer Credit Healthy, but Mortgage Delinquencies Tick Up

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VantageScore, Stamford, Conn., released its CreditGauge for June, reporting that the average VantageScore 4.0 Credit Score increased one point to 702.

“Although pockets of stress persist in certain segments, our June analysis indicates that most consumers are managing their credit responsibly and maintaining good credit health,” said Atif Mirza, EVP and chief digital and insights officer at VantageScore. “Between the positive employment picture and healthy household balance sheets, consumers are looking strong heading into the second half of 2026.”

However, mortgage data revealed early-stage delinquencies are up 13.5% and late-stage delinquencies are up 19%, although mid-stage delinquencies posted a 3.1% improvement.

Looking at 13-month delinquency rate trends, early-stage mortgage delinquencies were up to 0.97% from 0.85% a year ago. Serious delinquencies were up to 0.17% from 0.14% a year ago.

The average mortgage balance hit a record of $275,000 in June, up $727 from May and up $7,300 year-over-year. The balance-to-loan ratio fell to 78.94%.

Month-over-month, mortgage originations were near flat. Gen Z saw the largest increase, up by 0.09%.

Year-over-year, mortgage originations increased across all generations. Boomers and millennials had the largest gains, up 0.02% each.