Freddie Mac and Federal Reserve Track Rising Borrowing Costs and Debt Delinquency
What happened
The share of American families behind on loan payments jumped from 12% in 2025 to nearly 20%. Those behind on bills by two months or more rose from 5% in 2022 to over 8%. Freddie Mac reported that the cost of a mortgage increased from 6% in February to 7.4% at the beginning of October, while gas prices are 34% higher than a year ago.
From nypost.com
Why it matters
Both Freddie Mac and the Federal Reserve are tracking rising borrowing costs. The increase in mortgage rates and the rise in consumer debt delinquency suggest growing financial pressure on American households.
From nypost.com
Who's involved
- Freddie MacReports rising borrowing costs and tracks mortgage rate increases.
- FEDIts Survey of Consumer Finances shows rising consumer debt delinquency.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- National Association of Home BuildersSpeculative
Higher borrowing costs could reduce consumer demand for new housing construction.
- RedfinSpeculative
Rising mortgage rates could reduce housing affordability, impacting sales volume.
- Freddie MacSpeculative
The rising costs might increase risk exposure for Freddie Mac.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Rising mortgage costs may slow Fannie Mae's market activityRising mortgage costs may slow Fannie Mae's market activity and increase consumer riskLikely
- Rising rates may squeeze AGNC's mortgage-backed security holdingsRising rates and consumer debt stress may decrease the value of AGNC's mortgage-backed securitiesPossible
- How could rising borrowing costs affect the National Association of Home Builders?Rising mortgage costs may reduce demand for new homesPossible
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The entities involved
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Freddie Mac
American government-sponsored enterprise
Related events
- FED decisions are impacting borrowing costs tracked by Bankrate and mortgage rates reported by Freddie Mac, amid inflation fears stoked by the Middle East conflict. Trump is pressuring the central bank to slash rates.
- Freddie Mac data is being used to inform the current economic outlook.
- Both Freddie Mac and the Mortgage Bankers Association reported on mortgage market trends on May 20, 2026.
- Annaly Capital Management and Ladder invested in Agency MBS guaranteed by Freddie Mac.
- The Federal Reserve's interest rate policies affect the profitability of Mortgage-Backed Securities (MBS) backed by Fannie Mae and Freddie Mac.