A recent analysis by Cotality—a mortgage data and analytics firm—shows that mortgage delinquencies are rising across the U.S., with serious late payments climbing notably in certain regions.
What’s Driving the Uptick?
-
Ballooning escrow costs: Homeowners are grappling with sharply higher property taxes and insurance premiums—escrow expenses have surged approximately 62% over the past five years.
-
Geographic spikes: States in the Southeast—especially Florida, Georgia, and South Carolina—have seen the most significant year-over-year increases in serious delinquencies.
Headlines by the Numbers
| Region |
Key Trend
|
|---|---|
| Southern hotspots |
Florida, Georgia, South Carolina top the list
|
| Rising strain |
High taxes and insurance premiums mount pressure
|
-
Florida saw property taxes climb nearly 50% over five years, with escrow payments projected to continue their upward trend.
-
In South Carolina, the departure of insurers forced remaining companies to raise rates, making insurance premiums more burdensome.
-
Georgia recorded an average annual property tax hike of over $700.
Cotality’s economist, Archana Pradhan, emphasized that due to soaring housing costs, insurance, and taxes, many homeowners are finding their finances strained to the breaking point.
Bigger Context: Mortgage Rates & Market Inertia
High escrow costs are compounded by persistently high mortgage rates:
-
A Bankrate survey revealed that more than half of existing homeowners have no intention of selling or buying—regardless of rate drops.
-
The average 30-year mortgage rate sits around 6.7%, well above the sub-5% rates many would consider comfortable.
This cautious sentiment has kept housing turnover low, keeping supply tight even amid broader market stagnation.
What This Means for Homeowners & Potential Buyers
-
Escrow costs matter: Rising insurance and taxes are not just a minor increase—they can significantly impact monthly budgets.
-
Regional vulnerability: If you live in the Southeast, your area is among those feeling the most pressure.
-
Limited housing mobility: Homeowners may think twice before weighing selling versus upgrading due to the inertia caused by high financing costs.
Bottom Line
A growing number of homeowners are falling behind—not just because of traditional mortgages, but due to sharply increased escrow costs. With these hidden expenses now a significant factor—and mortgage rates still elevated—the housing market is moving cautiously, with more people staying put and fewer opting to buy or sell.
