Californians are having the toughest time paying their mortgages on time in nine years, but they’re better at paying lenders than most Americans.
My trusty spreadsheet found this troublesome pattern within the Federal Reserve Bank of New York’s study of credit files. The stats, which date to 2003, track consumer debt payments for mortgages, credit cards, auto and student loans in 11 big states and the nation through 2026’s third quarter. These statistics only consider individuals with credit histories — a sizable but not comprehensive segment of the population.
It’s also worth noting that despite all the talk about how unaffordable life in California is, Golden Staters have fewer mortgage delinquencies than their peers nationwide.
In the third quarter, 1.1% of U.S. mortgages were late — the highest since the first quarter of 2018 — but far from the 24-year average of 2.5%.
And Californians pay their mortgages on time more often than folks in the state’s two biggest economic rivals.
Texas’ 1.5% mortgage delinquency was its highest since the first quarter of 2015 and nears its 1.6% historic norm. Meanwhile, Florida’s late home loans hit 1.9%, the highest since the third quarter of 2018, but below its 5.2% average.
Broader uptick
If you look at all kinds of debt, you see 2.5% of total California borrowings were 90 days or more late in the third quarter. That’s the highest level of overall delinquencies since the third quarter of 2015.
Slow bill payments in 2026 have been rising since the pandemic era, when government programs either boosted incomes or nudged lenders to be more generous with late-payers. A recently wobbly economy and the end of most government aid make bill paying trickier for many Americans.
But before you worry too much about Californians skipping their bills, note that the current delinquency rate is well below the state’s 3.5% average late-pay rate over the past 24 years.
Those late payments are better than the typical American. The 1.1% U.S. delinquency rate in the third quarter was the highest since the first quarter of 2016. But it’s below the 3.7% 24-year average.
Texans had 4.7% of their debts late in the third quarter, the highest since the first quarter of 2013 and above the 4% average.
Floridians were 4.4% late on debts, the highest since the third quarter of September 2018, but below the 6.2% average.
Pile of debts
Californians borrow a lot, largely because of the state’s high housing prices, but their borrowing pace has cooled.
Consumer debt across the state equaled $88,000 per person in the third quarter, up 0.5% year over year. Mortgages are 81% of statewide debt.
That growth looks awfully sluggish compared with the 2.9% average rate since 2003. Whether reluctance to add debt is savvy or skittishness remains a big question.
Nationally, debt is smaller — $64,500 per person — with mortgages making up 73% of that borrowing.
The 1.8% one-year growth in borrowing among all Americans is faster than California’s. Yet that expansion trails U.S. history – a 3.1% average growth rate since 2003.
Texas? $61,500 per person, up 2.1% in a year and below the 3.9% average growth. Mortgages are 66% of the debt.
And Florida? $64,000 per person, up 2.3% in a year and below the 3.4% average growth. Mortgages are 70% of the debt.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
ICYMI:Here are the Southern California News Group’s most popular real estate news stories for October:
No. 1: Dana Point’s Ritz-Carlton sells for estimated $600 million
No. 2: Laguna Beach estate sells for $82.6 million, second-highest OC home sale
No. 3: Newport Beach’s 100-year-old landmark Lovell Beach House seeks $18.8 million
No. 4: Southern California homebuying crashes to 2nd slowest pace on record
No. 5: ‘New Girl’ star Jake Johnson lists Pasadena home for $3.3 million
No. 6: 12 Orange County ZIPs on costliest housing list, 3rd most in nation
No. 7: Palos Verdes Estates oceanfront compound sells for record $24.3 million
No. 8: Home prices drop in 42% of Orange County
No. 9: Long Beach mid-century duplex photographed by Julius Shulman seeks $1.5 million
No. 10: Gains in California home prices continue to evaporate
No. 11: Real estate news: Costa Mesa apartment complex fetches $9.4 million
No. 12: Real estate news: Placentia shopping center trades hands for $66 million
No. 13: 69 California ZIP codes make priciest-housing list, the most of any state
No. 14: Laguna Beach’s ridge-cresting ‘Wave House’ seeks $7.9 million
No. 15: Rents are rising in 58% of Southern California cities
