Mortgage Stress Intensifies In Several States During Q1
By CU Today Staff —
MIAMI—Mortgage delinquency rates climbed in most states during the first quarter of 2026, with several states seeing sharp increases that suggest growing financial strain on homeowners despite a still-resilient national housing market, according to a new analysis from personal finance company WalletHub.
WalletHub’s latest report on states where mortgage delinquency is increasing the most found Vermont posted the largest quarter-over-quarter increase in delinquent mortgages between Q4 2025 and Q1 2026, with delinquencies rising more than 12%. Delaware ranked second with an increase of nearly 7%, followed by Louisiana, where delinquent mortgages rose more than 4% during the same period.
Despite leading the nation in worsening delinquency trends, Vermont still maintains one of the country’s lower overall mortgage delinquency rates at approximately 6%, according to the report. WalletHub pointed to the state’s mid-tier economy and relatively high tax burden as potential contributors to the recent deterioration in payment performance.
Delaware, meanwhile, recorded an overall mortgage delinquency rate of 8.4%, ranking 13th-highest nationally. The report noted the state also has an elevated share of consumers who have received payment deferrals or accommodations tied to financial hardship, signaling broader consumer stress beyond housing loans alone.
Louisiana continued to stand out as one of the nation’s most financially strained mortgage markets. The state posted the country’s second-highest overall mortgage delinquency rate at 14.3% while also leading the nation in the share of consumers with distressed credit accounts, an indication that financial difficulties are extending across multiple forms of household debt. WalletHub said the data suggest many borrowers are struggling simultaneously with mortgage, credit card and other payment obligations.
Originally reported by CU Today.