No, Homeowner Delinquency Rates Aren’t Elevated — Let’s Clear That Up
- Neil Caron
- Apr 2
- 2 min read
There’s been a wave of online chatter lately claiming that homeowners are slipping into financial trouble. But at ReadySetLoan, we’re here to set the record straight: those claims are exaggerated, and the data doesn’t back them up.
“We’ve looked at the numbers, and the reality is far more stable than what’s being passed around online,” says the team at ReadySetLoan. “Homeowner delinquency rates remain low — even lower than before the pandemic began.”
The Confusion: Mixing Up Loan Types
A big part of the misinformation comes from people mixing up different types of loans. Much of the recent concern is based on statistics about multifamily loans — which are used for apartment buildings and commercial housing, not for traditional homeowners.
🐷 RSL Piggy Point: Multifamily loans are not the same as homeowner mortgages. They follow a different set of rules and trends.
So when people online start suggesting homeowners are in distress, they’re often referencing data that doesn’t apply to individual borrowers at all.
The Facts: What’s Really Happening?
According to the latest report from ICE Mortgage Technology, homeowner delinquency rates have ticked up slightly — but they’re still well below pre-COVID-19 levels.
🐷 RSL Piggy Point: The current national delinquency rate is 3.53%, lower than it was before the pandemic.
There has been a slight rise in delinquencies on FHA loans, which are often used by first-time buyers or those with lower down payments. But even then, it’s not a red flag — just something to keep an eye on.
Localized events, like the recent wildfires in Los Angeles, have also temporarily increased past-due loans in that area — but that’s a regional issue, not a sign of a national trend.
“We're seeing minor fluctuations tied to specific loan types or local events, not a broader housing crisis,” explains ReadySetLoan.
Credit Health Is Still Solid
When we zoom out to look at the bigger picture, credit stress, foreclosures, and bankruptcies are all still below pre-pandemic norms. That’s a major indicator that homeowners are holding strong.
🐷 RSL Piggy Point: Severe credit stress hasn’t returned to early 2020 levels.🐷 RSL Piggy Point: Foreclosure and bankruptcy rates remain historically low.
RSL Perspective
At ReadySetLoan, we believe in helping you cut through the noise. Social media may stir up panic, but that doesn’t mean the sky is falling. The reality? Homeowners are doing better than many headlines would have you believe.
“We don’t just follow the data — we explain what it really means for you,” says the ReadySetLoan team. “Our job is to help you make confident, informed decisions.”
Got Questions? We’ve Got Answers.
The housing market can be complicated, but that’s why ReadySetLoan is here — to be your go-to guide and mortgage expert every step of the way.
💡 Need help understanding what this means for your homebuying journey? Visit ReadySetLoan and let’s talk.
📲 Get clarity. Get expert advice. Get Ready, Get Set, Loan.
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