aerial photography of rural
Washington Post financial advice columnist Michelle Singletary said echoes of the Republican-era 2008 housing crisis are creeping back into a new presidential administration.
“This week, there was yet another warning that many homeowners might be headed for trouble,” Singletary told the Post.
Again, like the 2008 ruination, this new brewing crisis is ensnaring moderate- and low-income homeowners first. The Federal Reserve Bank of New York’s Center for Microeconomic Data reports that mortgage delinquency rates for lower-income households are surging, according tothe recently released Household Debt and Credit report for the fourth quarter of 2025.
“According to New York Fed data, the 90-plus-day mortgage delinquency rate for families in the lowest-income bracket jumped from 0.5 percent in 2021 to nearly 3 percent by the end of 2025,” said Singletary. “Meanwhile, folks in the highest-income areas are doing just fine, maintaining “historically lower delinquency rates.”
It’s another reminder that the U.S. economy is largely benefiting people with means, “while financial storm clouds are gathering over those who can least afford a rainy day,” said Singletary. “As the New York Fed points out, ‘financial distress appears to be deepening for households in lower-income areas.’”
The Trump administration’s job market could be a major contributor, according to Fed analysts poring over the mortgage performance disparities. Trumps is pleased to crow about the Labor Department’s latest jobs report showing modest gains in January, and U.S. AG Pam Bondi may flail at the latest numbers from the stock market to dodge questions about unpursued Epstein investigations but job growth for Americans appears limited to just a few sectors, such as health care.
“Nationwide, unemployment is relatively low, but ‘worsening’ regional labor markets are making it hard for people to keep up with their mortgage payments,” Singletary said. “… The number of job openings has trended down to 6.5 million, a decrease of nearly 1 million openings over the last year, the Bureau of Labor Statistics reported earlier this month. If you’re unemployed or looking to take on a second job, this data indicates there are fewer positions to apply for than there were a year ago, likely leading to more competition for the roles that remain.”
Worse, while a few U.S. counties may be driving the good jobs report numbers, two-thirds of U.S. counties have seen their local unemployment rates rise, and 5 percent of the population lives in counties where unemployment rates have risen by more than 1.6 percentage points,” according to the New York Fed.
“The number of job openings has trended down to 6.5 million, a decrease of nearly 1 million openings over the last year, the Bureau of Labor Statistics reported earlier this month. If you’re unemployed or looking to take on a second job, this data indicates there are fewer positions to apply for than there were a year ago, likely leading to more competition for the roles that remain,” Singletary said.
Count this as a potential “canary in the coal mine for a potential broader economic slowdown,” Singletary added. “If you can’t find work or a stable job that keeps up with the cost of living, you can’t keep up with your mortgage payments.”