Mortgage delinquency is worsening across most of the country, with rates ranging from 3% to nearly 24% depending on the city, according to WalletHub. The firm found 87 of the 100 largest US cities saw delinquency rates rise between Q1 and Q2 2025 as elevated mortgage rates, high home prices, and cost-of-living pressures strained household finances. Laredo, Texas posted the highest share at 24%, with a nearly 6% quarter-over-quarter increase. Detroit ranked second at nearly 19%, up 11% in the latest quarter. Newark, New Jersey placed third at close to 17%, with a 9% quarter-to-quarter surge.

87 out of 100 cities saw mortgage delinquencies rise in one quarter. That’s not isolated stress, that’s systemic. Laredo at 24% means nearly one in four mortgages are delinquent. Detroit at 19% with an 11% quarterly jump shows the problem is accelerating. We’ve been tracking car repos hitting 3 million for the year, credit cards at 37% delinquency in Mississippi, student loans with 5.3 million first-time defaults. Now mortgages are joining the pattern.
People prioritize keeping their house above everything else, so mortgage delinquency comes last. When it starts rising across 87 cities simultaneously, households have already exhausted every other option. The median home is $439,701 against median household income of $83,730. Mortgage rates stayed elevated even as the Fed cut rates because bond yields kept rising. When housing becomes unaffordable and people can’t keep up with payments, foreclosures follow.

This feeds directly into the housing market correction prediction we covered where analysts expect prices to drop significantly because the math doesn’t work anymore. The delinquency spike is the early stage of that correction playing out in real time.

https://citizenwatchreport.com/5-trillion-in-consumer-credit-87-cities-with-rising-delinquencies-24-in-laredo-collapsing-confidence-nationwide/