Understanding the Current Mortgage Delinquency Landscape

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Americans Are Late on Their Mortgages: Why I’m NOT Worried About THAT Chart

On The Market

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CHAPTER

Understanding the Current Mortgage Delinquency Landscape

This chapter explores the state of mortgage delinquencies in the U.S. after forbearance, highlighting that while some reports suggest rising foreclosure risks, overall delinquency rates remain low and the mortgage market appears stable.

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Mortgage delinquencies are up…or are they? One chart that’s been circulating on social media would have you believe that a growing number of homeowners are on the brink of foreclosure, driving us toward another 2008-style collapse. Is the panic justified or unfounded? We’ll dig into the data in today’s episode!

A Freddie Mac chart has been doing the rounds recently, showing a massive jump in delinquencies, but what the data really reveals is a spike in another type of real estate delinquency—a trend that should come as no surprise, given how rising interest rates impact adjustable-rate loans. But what about residential real estate? Are regular homeowners now suddenly missing mortgage payments to 2008 levels?

There’s no denying that we’re entering a buyer’s market. While a 2008-style housing market crash is unlikely, inventory is growing, and home prices could decline another 2%-3%. Whether you’re a regular homebuyer or real estate investor, this means you have an unusual amount of negotiating leverage. We’ll share a strategy you can use to insulate yourself from a potential dip and capitalize on an eventual surge in home prices!

In This Episode We Cover

How mortgage delinquency rates impact the housing market overall

Why real estate is historically less volatile than stocks and other markets

The “canary in the coal mine” that could signal trouble for the housing industry

Why we’re seeing an (expected) surge in these mortgage delinquencies

Taking advantage of a buyer’s market and a potential “dip” in home prices

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find Investor-Friendly Lenders

Over 6 Million Americans Are Late on Their Mortgage Payments—Here’s What It Means for Investors

Dave's BiggerPockets Profile

Grab the Book, “Recession-Proof Real Estate Investing”

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-309

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