VantageScore CreditGauge: Mortgage Delinquencies Increase as Early-Stage Credit Stress Broadens

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Mortgage delinquencies increased across all stages, according to the latest CreditGauge report from VantageScore.

The report said early-stage delinquencies jumped by 30.9% year over year January.

VantageScore said credit originations increased modestly over the same period as consumers increased their borrowing. One notable exception was credit card lending, where originations declined as credit card issuers tightened lending standards.

Susan Fahy, executive vice president with VantageScore, noted the broad-based rise in early-stage credit delinquencies across credit tiers underscores persistent macroeconomic pressures, particularly for more vulnerable borrowers. “Sustained cost pressures and interest rates may leave some consumers increasingly exposed to future economic shocks,” she said.

Compared to a year ago, mortgage delinquencies have increased across all days past due stages on a relative basis. Early-stage delinquencies (30–59 DPD) rose sharply by 30.9%, followed by late-stage delinquencies (90–119 DPD), which increased 14.6% and mid-stage delinquencies (60–89 DPD), which were up by 9.06%. “This is the most notable deterioration across credit products, signaling gradually building repayment pressure in the housing segment,” the report said.

Credit originations Increased on a month-over-month basis across lending products, VantageScore reported. Credit originations grew modestly for personal loans (+0.29%), auto loans (+0.10%) and mortgages (+0.03%), while credit card originations edged down slightly (-0.09%) in January.

VantageScore is a joint venture owned by Equifax, Experian and TransUnion.