Mortgage debt in the U.S. has continued to climb, reaching new records, even as early-stage delinquencies have slightly improved. However, a different story is unfolding with “serious” delinquencies (90+ days late), which are on the rise and highlight the financial strain in certain states.
📈 Overall Mortgage Debt Trends
· Record High Debt: Total household debt reached 13.19 trillion.
· High Prices: The average mortgage balance in the U.S. is $258,214 (2025), a 3.1% increase from the previous year. The median credit score for new borrowers remained high at 775 in Q4 2025, showing that new loans are going to those with the strongest financial profiles.
📊 The Increase in 90-Day Defaults by State
While 30-day delinquencies have eased slightly, the flow of mortgages into “serious delinquency” (90+ days late) accelerated from 1.4% to 1.5% in Q1 2026. Here’s where the problem is concentrated:
· Highest Current Rates: The states with the largest percentage of mortgages that are 90+ days past due (as of late 2025/early 2026) are in the South:
· Mississippi: 2.53%
· Louisiana: 2.42%
· Alabama: 1.94%
· Arkansas: 1.74%
· Georgia: 1.65%
· Fastest-Rising Rates: In addition to the high rates in the South, states like Florida, South Carolina, and Georgia have seen the fastest year-over-year increases, largely driven by spikes in property taxes and insurance costs.
🗺️ Summary of the Worst States
· Persistently High: Deep South states (Mississippi, Louisiana, Alabama, Arkansas, Georgia) have the highest percentages of seriously delinquent loans.
· Quickly Worsening: Coastal Southeast states (Florida, South Carolina) are seeing the most rapid spikes due to rising insurance and tax costs.
· Urban Hotspots: Cities like Laredo, Texas (24%) and Detroit, Michigan (19%) have extremely high localized delinquency rates.
