I have to disagree. The thesis of the article is in the first paragraph:
…early delinquencies are rising faster than any other type of consumer credit. The stress is real, it’s coming on early, and it’s going faster than most investors think.
The data is from VantageScore showing that mortgage defaults are increasing at a faster rate than other debts. VantageScore - Rising Mortgage Delinquencies Point to Potential Credit Stress: May 2025 VantageScore CreditGaugeâ¢
The thesis is that this is an early indicator of significant financial stress by borrowers. The absolute numbers are below historical averages, but these folks see the trend as concerning.
I would add that this early indicator is consistent with evidence of declining consumer spending. If Americans are feeling increasing concern about servicing their debt, they probably won’t be buying much. NRF: Retail sales slowed in June - Talk Business & Politics
Combine this with the expectation of rising prices from tariffs/worker shortages and the near term future of the economy seems…challenging.
Or, to paraphrase Ross Perot, that giant sucking sound you may soon hear will be from deflating stock prices.
October might suck.