One Key Sign We’re Not Headed for a Wave of Foreclosures

Lately, foreclosure numbers have started to tick up, and for many people that immediately brings back memories of the 2008 housing crash. But while it’s natural to compare today’s market to what happened back then, the data tells a very different story.

Yes, foreclosure filings have increased slightly. However, they remain far from crisis levels, and current trends don’t suggest a major surge is on the horizon.

One important indicator to watch is serious mortgage delinquencies—loans where homeowners are more than 90 days behind on their payments. These have risen a bit, but they’re still historically low.

Recent data from the Federal Reserve Bank of New York shows that only about 1% of mortgages are seriously delinquent today, which means roughly 1 out of every 100 homeowners is that far behind on payments.

Compare that to the period surrounding the housing crash, when serious delinquencies were close to 9%, or about 1 in every 11 homeowners. The difference is significant and highlights how much stronger the market is today.

It’s also important to remember that not every delinquent loan becomes a foreclosure. Many homeowners work with their lenders to create repayment plans or modify their loans. In fact, lenders often prefer these solutions because they also want to avoid a surge in foreclosures.

Because of that, actual foreclosure numbers are even lower than delinquency rates. According to ATTOM Data Solutions, only about 0.3% of homes are currently in the foreclosure process.

In other words, the market isn’t seeing a wave of foreclosures—it’s closer to a small ripple than a major surge. While foreclosure filings have risen slightly, today’s numbers remain historically low. Compared to the levels seen during the housing crash, the current housing market is still on much stronger footing.