Government-backed mortgage delinquencies rise

This is a news story, published by Yahoo Finance, that relates primarily to FHA news.

News about inflation

For more inflation news, you can click here:

more inflation news

Yahoo Finance news

For more news from Yahoo Finance, you can click here:

more news from Yahoo Finance

About the Otherweb

Otherweb, Inc is a public benefit corporation, dedicated to improving the quality of news people consume. We are non-partisan, junk-free, and ad-free. We use artificial intelligence (AI) to remove junk from your news feed, and allow you to select the best business news, entertainment news, world news, and much more. If you like this article about inflation, you might also like this article about

broader mortgage payment trends

. We are dedicated to bringing you the highest-quality news, junk-free and ad-free, about your favorite topics. Please come every day to read the latest home loans news, risky mortgages news, news about inflation, and other high-quality news about any topic that interests you. We are working hard to create the best news aggregator on the web, and to put you in control of your news feed - whether you choose to read the latest news through our website, our news app, or our daily newsletter - all free!

mortgage rates

Yahoo Finance

•

Business

Business & Economics

More Americans with government loans are falling behind on their mortgages, a warning sign for consumer health

Summary

Nutrition label

76% Informative

Delinquency rates on FHA and VA loans reached 11.03% and 4.7% at the end of last year .

FHA loans are popular among borrowers with dinged credit or lower incomes.

Conventional mortgage delinquencies are creeping up too, but much more slowly.

The divergence in that data reflects the extra economic pressures lower-income borrowers have faced.

Those who purchased in 2021 or earlier, when mortgage rates were near all-time lows, have much lower debt-to-income ratios and healthier equity positions than those who bought in 2022 or 2023 .

Recent borrowers are going delinquent early in their loans at higher rates.

Higher prices and mortgage rates also mean they build equity at a slower pace.

VR Score

Informative language

Neutral language

Article tone

informal

Language

English

Language complexity

Offensive language

not offensive