Mortgage delinquencies edged higher in September as rising living costs and a softer job market placed more pressure on borrowers, according to data from Fannie Mae and Freddie Mac. The increase was slight but notable, signaling emerging stress in an otherwise stable housing credit environment.
Minor rise, but trend worth watching
Freddie Mac reported that serious delinquencies on single-family loans rose to 0.57% in September, up from 0.56% in August. Fannie Mae’s rate also climbed, reaching 0.54% from 0.53%. While both remain well below pre-pandemic averages, the uptick marks the second consecutive monthly increase for each agency.
Housing analysts view the trend as a reflection of higher borrowing costs and modest labor market cooling. For many homeowners in the San Gabriel Valley, including El Monte, Baldwin Park, and Rosemead, mortgage payments have become more challenging as inflation keeps household budgets tight.
“Most borrowers are still managing fine, but even a small rate increase or job loss can push some into delinquency,” said a mortgage advisor based in Temple City. “We’re starting to see more people request short-term forbearance or refinancing options.”
Multifamily sector under added strain
While single-family loans remain sound, multifamily delinquencies have climbed to their highest levels since before the pandemic, excluding the 2020 surge. That increase reflects weaker rent growth and higher operating expenses for property owners—particularly in urban markets like Arcadia and South El Monte, where smaller landlords face thinner profit margins.
Local property managers say that although rents have leveled off, insurance, maintenance, and financing costs continue to rise. “Owners who bought during the low-rate era are feeling squeezed,” one Irwindale property manager noted. “Vacancies are still low, but cash flow isn’t what it was two years ago.”
Impact on local housing dynamics
For San Gabriel Valley communities, the modest increase in delinquencies could mean slower housing turnover through the winter. Fewer homeowners may choose to list properties if they are struggling to stay current, while investors may grow more cautious about new acquisitions.
Despite these pressures, economists emphasize that systemic risk remains low. Both Fannie Mae and Freddie Mac report delinquency levels far below those seen during the 2008 housing crisis or early pandemic months, suggesting the overall mortgage market remains sound.
Still, with borrowing costs expected to stay elevated through the end of the year, local experts recommend that homeowners review their loan terms and explore relief programs if needed. Lenders are encouraging early communication to prevent minor delinquencies from escalating into defaults.
As the broader economy adjusts to slower growth, the coming months will reveal whether September’s uptick was a temporary blip or the start of a longer trend.
For detailed housing credit data, visit www.freddiemac.com.
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