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

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 3 April 2025

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Sign Up for the On the Market Newsletter 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 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	More Americans are falling behind on their mortgages, which understandably is causing fear that
0:05.8	another 2008-style bubble and crash could be coming to the housing market in the near future.
0:12.6	But is it? Is the recent data showing a rise in delinquencies a sign of an impending collapse,
0:19.3	or is something else going on here?
0:21.9	Today, we're going to explore what's going on with American homeowners, the mortgage industry,
0:26.9	and yes, I will talk about that one chart that's been making its rounds and causing mass
0:32.9	hysteria on social media over the last couple of days.
0:41.0	Hey, everyone.
0:42.0	Welcome to On the Market.
0:43.2	It's Dave Meyer, head of real estate investing at Bigger Pockets.
0:47.1	On today's show, I'm going to be talking about what's happening with mortgage delinquencies
0:51.0	here in 2025.
0:52.9	And there are a few reasons this should really matter
0:56.1	to you and why I wanted to make this episode as soon as possible.
1:00.9	First reason is that the overall health of the mortgage industry really matters, like a lot.
1:06.5	I've said this many times over the last few years, but the housing market is a very unique
1:12.9	asset class, because, as you know, housing is a need. And as we say often on this show,
1:19.1	80% of people who sell their home go on to re-buy their home. This makes it different from
1:26.3	things like the stock market, where no one needs
1:29.0	to own shares of a stock. And if you decided you want to take some risk off the table,
1:33.6	you could sell your stock and then just not reinvest that money. But that's not really what
1:38.5	happens in the housing market. The housing market tends to be less volatile because people want to stay in their homes.
	...

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