BiggerPockets Daily No, Mortgage Delinquencies Are Not Spiking and the Market is Not Crashing
Mar 31, 2025
Homeowner delinquencies are rising, but there's no need to panic. The data shows that the increase is mostly tied to multifamily loans, while single-family homeowner statistics remain reassuring. Economic forecasts from Fannie Mae offer insights into home sales and inflation, debunking fears of a market collapse. Surprisingly, the current levels are still below pre-COVID figures. Despite wildfires and inflation concerns, the housing market's stability and steady home price appreciation stand out amidst economic uncertainties.
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Misinterpreted Delinquency Data
- Online discussions about rising delinquencies causing a housing crash are misconstrued.
- The data often cited comes from multifamily loans, not individual homeowners.
Actual Delinquency Rates
- The national mortgage delinquency rate is up slightly year over year but remains below pre-pandemic levels.
- FHA loans, though a smaller percentage of mortgages, account for a disproportionate share of the delinquency increase.
Economic Impact of Tariffs
- Trump's trade policies are causing economists to revise projections, with lower GDP growth and higher inflation expected.
- Fannie Mae, however, projects slightly higher existing home sales and stable home price appreciation.