Data shows inflation is moving in the wrong direction. But before the headlines send anyone into a panic, here’s what’s actually going on, why it matters for the housing market, and what it means if you’re thinking about buying or selling.

Inflation Went Up – Here’s What That Actually Means

The government tracks inflation in a variety of ways. One is something called PCE – the Personal Consumption Expenditures Price Index. It measures how much more (or less) people are paying for goods and services compared to a year ago. And just based on your own expenses, you can probably guess which way that’s trending.

That’s the one everyone is talking about right now. Check out the yellow line to see how that’s spiked since February (see graph below). A big driver of this jump is the ongoing conflict in the Middle East, which has pushed gas and energy prices significantly higher.

Now, you may have noticed there’s a second line. The blue line shows core PCE. That’s the same measure, but with gas and energy prices stripped out. The Federal Reserve (the Fed) actually watches this number most closely because energy prices swing around a lot and can be misleading.

And here’s the somewhat encouraging part.

Core PCE is rising, but not nearly as fast as the overall number. That suggests a good chunk of the inflation spike we’re seeing right now is tied directly to what’s happening overseas. So, when that situation settles down, inflation may settle a bit, too.

Why This Matters for Mortgage Rates

Here’s the housing connection. When inflation is high, the Fed tends to keep the Federal Funds Rate elevated or even raise it to try to taper spending and cool inflation back down. And while it’s not a one-for-one relationship, that Federal Funds Rate can have an impact on your mortgage rate when you buy. 

Right now, based on the information we have, there’s roughly a 50/50 chance the Fed actually raises the Federal Funds Rate before the end of 2026, according to CME FedWatch (see graph below):

While it’s too soon to say where this goes for certain and if we’re headed for a rate hike, it does mean mortgage rates are probably not coming down as soon as most people were hoping.

If you’ve been waiting for rates to drop significantly before making a move, this report is a reminder that “higher for longer” is still very much on the table. It really all depends on where the economy goes from here. According to Bankrate:

“Oil prices and bond yields have dropped a bit . . . but they’re still way up compared to the start of spring. Until there’s a resolution to the war, look for both inflation and mortgage rates to stay high.”

But This Is Not 2008 – Not Even Close

Just remember, a tough economy does not equal a housing crash. The conditions today are very different from what led to the 2008 collapse. Here’s why:

• Inventory is still relatively low. There’s no flood of homes hitting the market.

• Most homeowners today have strong equity in their homes.

• Lending standards are far stricter than they were before 2008.

• Today’s challenge is affordability, not a wave of distressed underwater sellers.

Uncomfortable and unhealthy are not the same thing. The market feels hard right now, but “hard” and “crashing” are very different.

You Still Have Options. Here’s What To Do.

High rates don’t mean homeownership is out of reach. It just means the path looks a little different. There are real strategies that can help, depending on your situation:

• Ask your lender about different loan options. Adjustable-rate mortgages (ARMs) or rate buydowns may help lower your monthly payment in the short term.

• Explore first-time buyer programs, down payment assistance, or seller concessions that could help offset costs.

• Stay in close touch with a trusted agent and lender. When rates shift, and they will, you’ll want to be ready to move fast.

The right strategy, tailored to your goals, matters a lot more than waiting for the perfect moment that may never come.

Bottom Line

Inflation is still above where the Fed wants it, and that means mortgage rates are likely to stay elevated for a while. But for people who need to move, strategy matters far more than trying to perfectly time the market.

Wondering what this means for your specific situation? Connect with a local agent or lender.

The post What Rising Inflation Means for Your Move appeared first on Platinum Realty Services.

If the housing market feels confusing right now, you’re not alone.

Mortgage rates have risen. Home sales haven’t picked up like expected. And many buyers and sellers are wondering when things are going to feel easier or be more affordable.

The truth is: a lot changed over the first half of this year.

Back at the end of 2025, economists were forecasting a much stronger housing market for 2026. They expected mortgage rates to come down, affordability to improve more dramatically, and home sales to rebound.

But lingering inflation, economic uncertainty, and growing geopolitical tensions overseas pushed mortgage rates higher than expected. And because rates stayed elevated for longer, many buyers continued to hold off.

That’s why experts recently revised their housing forecasts for the rest of the year (see graph below):

So, what does this actually mean for you? Let’s break it down.

Mortgage Rates May Remain Elevated

While just about everyone wants mortgage rates to go back to the uppers 5s or low 6s we saw at the start of the year, as of right now, the experts don’t think that’s likely to happen this year.

Instead, forecasts have been updated from the low 6s they originally projected. Many industry organizations are saying rates will stay in roughly the mid 6s this year. The good news is, that’s still lower than rates were a year ago.

Of course, this is based on what we know today. If the conflict overseas comes to an end or inflation drops, this could change. But if you’re waiting for lower rates, it may not pay off in the way you expect.

Existing Home Sales Revised Lower

Back in late 2025, experts expected we’d sell an average of 4.5 million homes this year. Now? That’s dropped down a bit to 4.2 million.

That tells us something important: buyers are still hesitant because affordability remains challenging.

Higher mortgage rates have made monthly payments harder to manage, especially for first-time buyers. And that’s slowed the pace of the market compared to what was originally expected. But even though the forecast was revised down, we’re still expected to sell more homes than last year. 

Once geopolitical tensions resolve and rates begin to settle down, many experts believe that group of buyers will be ready to jump back in. As Lawrence Yun, Chief Economist at NAR, explains:

“There is sizable pent-up demand that could be released into the market.”

There has already been a few glimmers of renewed hope lately. In recent months, pending homes sale have been improving month-over-month despite higher rates.

So, if you’re able to afford a home at today’s rates, it could still make sense to buy now. Because otherwise, if you wait, you’ll have more competition (and potentially fewer homes to choose from) when those others buyers jump back in.

New Home Sales Also Slowed

Builders also expected to have a stronger year. Earlier forecasts projected new home sales would top 700k in 2026. Now, economists expect we’ll be just shy of that number.

Again, mortgage rates are a major reason why.

But the upside for buyers is that builders may be even more motivated to sell. That means builder incentives, negotiation opportunities, and pricing flexibility may continue in many markets. So, if you live somewhere where there’s more new construction, this may actually be a bright spot for you.

Builders could be more ready to negotiate, and that gives you more leverage to get a better deal.

Home Prices Are Still Expected To Rise

This is one of the most important takeaways from the entire forecast. Even though sales activity is slower, on average, experts did not revise their home price forecast downward.

They still expect prices to rise nationally this year.

Why? Because while buyer demand has softened, the number of homes for sale is still relatively limited overall. That imbalance is helping support prices, even in a slower market.

Of course, conditions vary depending on where you live. Some markets are cooling more than others. But nationally, experts are still projecting steady price growth — not a major decline. And that should be a comfort whether you’re buying or selling.

Because sellers don’t want a major drop in prices. And while buyers may think they do, generally you feel better about a big purchase when it doesn’t depreciate right away.

Bottom Line

The housing market hasn’t rebounded as quickly as experts originally hoped. But that doesn’t mean it’s stalled.

Higher inflation and lingering economic uncertainty caused economists to revise their forecasts for this year. But importantly, when those two things settle down, many experts believe the market will regain its momentum.

So don’t see this revision in forecasts as a sign of trouble. See it as a temporary reaction to overall conditions and uncertainty.

If you want to know what’s happening in your local market, and what it could mean for your plans for the rest of this year, talk to a local agent.

The post The Mid-Year Housing Market Update: Why Forecasts Changed in 2026 appeared first on Platinum Realty Services.

Homebuyers are watching the economy closely, and for good reason. Buying a home is one of the biggest purchases most people ever make. And some recession talk in the media has made a lot of would-be buyers second guess their plans.

In the latest LendingTree survey, almost 2 in 3 Americans said they think a recession is coming. And 74% of respondents say that’s having an impact on their financial decisions.

But here’s the good news: the experts aren’t nearly as concerned.

Most Americans Expect a Recession, But Most Experts Don’t

According to an October report from the Wall Street Journal (WSJ), only 1 in 3 experts surveyed say we may be headed for a recession sometime in the next 12 months (see graph below):

If the expert economists aren’t super worried, should you be? We’re not in a recession right now. And there’s no guarantee we’re heading into one.

What we do have is uncertainty – and the best way to handle that is by leaning on facts, not fear. You can do that by making sure you have the information you need to make an informed decision.

Tips for Buying a Home During Periods of Economic Uncertainty

Here’s the best advice anyone can give right now. While it’s important to keep an eye on what’s happening in the economy, that shouldn’t necessarily overshadow your real-life needs. Economic shifts come and go, but the reasons people buy homes rarely change. Danielle Hale, Chief Economist at Realtor.com, explains:

“Well-prepared buyers who have been waiting on the sidelines are likely motivated by personal and lifestyle needs like growing families, new jobs, or retirement. And these considerations can outweigh short-term economic uncertainties . . . ”

Timing your move around real life (not the news cycle) is what matters most.

But here’s the key. If you’re going to buy a home right now, job stability really matters. You need to feel confident in your income and know you can comfortably manage your mortgage payments, even if your situation or the economy shift.

If your job is secure and you’ve built a cushion of savings, experts say you don’t necessarily need to delay. Just keep these tips from the economists at Redfin in mind:

• Set a budget and stick to it: Don’t overextend. Make sure your payments are affordable and your savings can cover any surprises. This includes factoring in costs likely to rise, like home insurance and taxes.
• Negotiate: There are more homes for sale right now, and other buyers may pull back because of their own fears. That gives you more negotiating power when working with sellers. Use it to get the best deal possible.
• Be strategic about payments and mortgage rates: Talk to lenders about what payment you can afford and the rate you can qualify for today, as well as your options if rates go down later on.
• Consider selling before you buy: If you already own a home, selling first can reduce the financial pressure and help solidify your budget for your next home.

But nothing replaces the value of having a trusted team around you, especially right now. As Bankrate says:

“Buying a home during a recession can sometimes be a good idea – but only for people who are lucky enough to remain financially stable . . . Be sure to enlist the help of an experienced local real estate agent. Not only do agents know their markets well, they will also work to get you the best deal in any given situation, including a recession.”

Bottom Line

Most Americans think a recession is coming. But most experts don’t.

So, you don’t necessarily have to put your moving plans on hold. If your finances are solid, your job is stable, and you have a real need to move, you can still make this happen. You just need the right team of pros by your side. 

What’s holding you back from making your next move? Connect with a local agent and lender to talk it over.

The post Most Experts Are Not Worried About a Recession appeared first on Platinum Realty Services.

There’s been a lot of talk lately about how a government shutdown impacts the housing market. You might be wondering: Is it causing everything to grind to a halt?

The short answer? No.

The housing market doesn’t stop. It keeps moving. Homes are still being bought and sold, contracts are still being signed, and closings are still happening. The difference is that a few parts of the process may slow down a little, but overall, the market continues to function.

Here’s What Typically Happens

Whenever the government shuts down, some federal agencies temporarily close or scale back their operations. That can cause a few hiccups in real estate, especially when it comes to processing certain types of government loans and insurance requirements:

• “Applicants for FHA, VA, or USDA loans—which account for about one-quarter of all mortgage applications—may encounter significant processing delays due to agency furloughs.” – Selma Hepp, Chief Economist at Cotality
• “By recent estimates, more than 2,500 mortgage originations per working day are at risk of delays during a shutdown . . .”  – Zillow
• Flood insurance approvals may also be paused. The National Flood Insurance Program can be temporarily affected, which delays closings in flood zones.

Even with those challenges and delays, most transactions still go through. Buyers keep buying, sellers keep selling, and agents keep helping people move forward.

The Housing Market Usually Bounces Back Fast

And you can see that play out in this data. If you look back at the most recent government shutdown that began at the end of 2018 and lasted for 35 days, sales activity dipped very slightly during the closure but picked right back up once the government reopened.

Data from the National Association of Realtors (NAR) shows existing home sales slowed for about two months, and then rebounded quickly as delayed closings worked their way through the system when the government reopened (see graph below):

What’s important to note is that the slowdown you see in the orange bars on this graph wasn’t simply due to seasonality in a typical housing market cycle. The sharper, shorter drop in this case lines up exactly with the 35-day government shutdown, and then sales bounced back as soon as it ended.

What This Means for You

If you’re in the middle of buying or selling a home, don’t panic. Most deals will still move forward, even if it takes a few extra days. Jeff Ostrowski, Housing Market Analyst at Bankrate, explains:

“If you’re expecting to close in a week or a month, there could be some slight delay, but I think for most people, it’s probably going to be a blip more than a real deal killer.”

And if you’re just starting to think about buying or selling, this could actually work in your favor. Some buyers and sellers may become cautious and pause their plans during times of uncertainty, like this, and that can open a short window of opportunity.

When fewer people are active in the market, well-prepared buyers may find less competition for homes, and motivated sellers may be more willing to negotiate. These brief slowdowns often create a moment where you can make a move that would be harder once activity ramps back up.

Bottom Line

A government shutdown can cause short-term delays for some buyers, but it doesn’t derail the housing market. The last time this happened, sales picked back up as soon as the government re-opened.

If you’re unsure how this might affect your plans, or just want to make sense of what’s happening, connect with a local real estate agent.

The post What a Government Shutdown Really Means for the Housing Market appeared first on Platinum Realty Services.

If you’ve seen headlines or social posts calling for a housing crash, it’s easy to wonder if home values are about to take a hit. But here’s the simple truth.

The data doesn’t point to a crash. It points to slow, continued growth.

And sure, it’s going to vary by local area. Some markets will see prices rise more than others. And some may even see small, short-term declines. But the big picture is: home prices are expected to rise nationally, not fall, over the next 5 years.

The Real Story Is in the Expert Forecasts

In the Home Price Expectations Survey (HPES) from Fannie Mae, each quarter over 100 leading housing market experts weigh in on where they project home prices will go from here. And in the report that was just released, the experts agree prices are projected to climb nationally through at least 2029 (see graph below):

Here’s how to read this visual. Each bar in that graph shows an increase, not a loss. It’s just that the anticipated pace of that appreciation varies year-to-year.

And to further drive this home, let’s look at another view of where prices are and where they’re expected to go. In this version, the expert forecasts are broken into 3 categories: the overall average, the most optimistic projections, and the most pessimistic projections (see chart below):

Notice how even the most pessimistic forecasters say we’ll see prices rise by almost 5% over the next few years.

• Overall, prices are expected to rise about 15% from now through the end of 2029.
• The optimists say we’ll beat that and see a roughly 26% increase.
• And even the pessimists anticipate prices will go up by 5% during that period.

What sticks out the most? None of these groups who study the market are forecasting a crash, or even a decline, over the next 5 years.

How This Compares to “Normal” for the Market

Now, focus back on the first graph. The projections call for 2-3.5% price increases in each of the next five years. For context, the average rate of appreciation for the last 25 years was closer to 4-5% annually.

So, while that’s slightly below the historical average, it’s much more sustainable and typical than where the market was in 2020, 2021, and 2022.

Back then, prices rose too much, too fast based on record-low supply and record-high demand. Some places even saw prices climb by 15-20%.

So, while it may feel like prices are stalling compared to those pandemic-era surges, what’s really happening is that the market is finally finding balance again.

Why Prices Aren’t Expected To Crash

A lot of the chatter about home prices today is based on that rapid rise and the old saying that what goes up, must come down. But historically, that’s not really true. Home prices almost always rise.

And the main reason we’re not heading for a repeat of 2008 is simple: supply and demand.

Even though affordability challenges have made it harder for some people to buy over the past few years, there still aren’t enough homes for everyone who wants one. And that ongoing shortage is keeping upward pressure on prices nationally. 

That’s why experts across the board can confidently agree: we’re not headed for a price collapse, but for steady, long-term appreciation.

And just in case it’s the economy that’s got you worried, remember this. Over the past 50 years, there have been plenty of economic events that have impacted the market. And one thing that’s consistently been true throughout time is the housing market always recovers. And we’re coming through that turn right now and going into a recovery.

Bottom Line

If you’ve been waiting to buy or sell because you’re worried about a crash, it’s time to look at the data – not the headlines.

The question isn’t if home prices will rise, it’s by how much.

Connect with an agent who can show you what’s happening in your local market and what these forecasts mean for your next move.

The post Is the Housing Market Going To Crash? Here’s What Experts Say appeared first on Platinum Realty Services.

You want mortgage rates to fall – and they’ve started to. But is it going to last? And how low will they go?

Experts say there’s room for rates to come down even more over the next year. And one of the leading indicators to watch is the 10-year treasury yield. Here’s why.

The Link Between Mortgage Rates and the 10-Year Treasury Yield

For over 50 years, the 30-year fixed mortgage rate has closely followed the movement of the 10-year treasury yield, which is a widely watched benchmark for long-term interest rates (see graph below):

When the treasury yield climbs, mortgage rates tend to follow. And when the yield falls, mortgage rates typically come down.

It’s been a predictable pattern for over 50 years. So predictable, that there’s a number experts consider normal for the gap between the two. It’s known as the spread, and it usually averages about 1.76 percentage points, or what you sometimes hear as 176 basis points.

The Spread Is Shrinking

Over the past couple of years, though, that spread has been much wider than normal. Why? Think of the spread as a measure of fear in the market. When there’s lingering uncertainty in the economy, the gap widens beyond its usual norm. That’s one of the reasons why mortgage rates have been unusually high over the past few years.

But here’s a sign for optimism. Even though there’s still some lingering uncertainty related to the economy, that spread is starting to shrink as the path forward is becoming clearer (see graph below):

And that opens the door for mortgage rates to come down even more. As a recent article from Redfin explains:

“A lower mortgage spread equals lower mortgage rates. If the spread continues to decline, mortgage rates could fall more than they already have.”

The 10-Year Treasury Yield Is Expected To Decline

It’s not just the spread, though. The 10-year treasury yield itself is also forecast to come down in the months ahead. So, when you combine a lower yield with a narrowing spread, you have two key forces potentially pushing mortgage rates down going into next year.

This long-term relationship is a big reason why you see experts currently projecting mortgage rates will ease, with a fringe possibility they’ll hit the upper 5s toward the end of next year.

Here’s how it works. Take the 10-year treasury yield, which is sitting at about 4.09% at the time this article is being written, and then add the average spread of 1.76%. From there, you’d expect mortgage rates to be around 5.85% (see graph below):

But remember, all of that can change as the economy shifts. And know for certain that there will be ups and downs along the way. 

How these dynamics play out will depend on where the economy, the job market, inflation, and more go from here. But the 2026 outlook is currently expected to be a gradual mortgage rate decline. And as of now, things are starting to move in the right direction.

Bottom Line

Keeping up with all of these shifts can feel overwhelming. That’s why having an experienced agent or lender on your side matters. They’ll do the heavy lifting for you.

If you want real-time updates on mortgage rates, reach out to a trusted agent or lender who can keep you in the loop and help you plan your next move.

The post Why Experts Say Mortgage Rates Should Ease Over the Next Year appeared first on Platinum Realty Services.

The Federal Reserve (the Fed) meets this week, and expectations are high that they’ll cut the Federal Funds Rate. But does that mean mortgage rates will drop? Let’s clear up the confusion.

The Fed Doesn’t Directly Set Mortgage Rates

Right now, all eyes are on the Fed. Most economists expect they’ll cut the Federal Funds Rate at their mid-September meeting to try to head off a potential recession.

According to the CME FedWatch Tool, markets are already betting on it. There’s virtually a 100% chance of a September cut. And based on what we know now, there’s about a 92% chance it’ll be a small cut (25 basis points) and an 8% chance it will be a bigger cut (50 basis points):

So, what exactly is the Federal Funds Rate? It’s the short-term interest rate banks charge each other. It impacts borrowing costs across the economy, but it’s not the same thing as mortgage rates. Still, the Fed’s actions can shape the direction mortgage rates take next.

Why Markets Already Saw This Cut Coming

Here’s the part that may surprise you. Mortgage rates tend to respond to what the financial markets think the Fed will do, before the Fed officially acts. Basically, when markets anticipate a Fed cut, that outlook gets priced into mortgage rates ahead of time.

That’s exactly what happened after weaker-than-expected jobs reports on August 1 and September 5. Each time, mortgage rates ticked down as financial markets grew more confident a cut was coming soon. And even though inflation rose slightly in the latest CPI report, the Fed is still expected to make a cut.

So, if the Fed goes with a 25-basis point cut, as expected, that’s likely already baked in to current mortgage rates, and we may not see a dramatic drop.

But if they go bigger and drop their Federal Funds Rate by 50 basis points instead, mortgage rates could come down more than they already have.

So, Where Do Mortgage Rates Go from Here?

While the upcoming cut may not move the needle much, many experts expect the Fed could cut the Federal Funds Rate more than once before the end of the year. Of course, that’s if the economy continues to cool (see graph below):

As Sam Williamson, Senior Economist at First American, explains:

“For mortgage rates, investor confidence in a forthcoming rate-cutting cycle could help push borrowing costs lower in the back half of 2025, offering some relief to housing affordability and potentially helping to boost buyer demand and overall market activity.”

If multiple rate cuts happen, or even if markets just believe they will, mortgage rates could ease further in the months ahead. But here’s the catch – all of this depends on how the economy evolves. Surprise inflation data or unexpected shifts could quickly change the outlook.

Bottom Line

Mortgage rates likely won’t drop sharply overnight, and they won’t mirror the Fed’s moves one-for-one. But if the Fed begins a rate-cutting cycle, and markets continue to expect it, mortgage rates could trend lower later this year and into 2026.

If you’ve been waiting and watching the housing market, now’s the time to talk strategy. Even small changes in rates can make a meaningful difference in affordability, and understanding what’s ahead helps you make the best decision for your situation.

The post What a Fed Rate Cut Could Mean for Mortgage Rates appeared first on Platinum Realty Services.

You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way.

On Friday, September 5^th, the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year.

What Sparked the Drop?

According to Mortgage News Daily, this was a reaction to the August jobs report, which came out weaker-than-expected for a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result.

Basically, we’re seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down.

Why Buyers Should Pay Attention Now

But this isn’t just about one day of headlines or one report. It’s about what the drop means for you.

This recent change saves you money when you buy a home. The chart below shows you an example of what a monthly mortgage payment (principal and interest) would be at 7% (where mortgage rates were in May) versus where rates roughly are now:

Compared to just 4 months ago, your future monthly payment would be almost $200 less per month. That’s close to $2,400 a year in savings.

How Long Will It Last?

That really depends on where the economy and inflation go from here. Rates could drop lower, or they could inch up slightly. 

So, make sure you’re connected with a good agent and trusted lender. They’ll keep a close eye on inflation indicators, job market updates, and reactions to upcoming Fed policy to gauge where mortgage rates may go from here.

But for now, focus on this. While no one can say for sure where rates are headed, the fact that rates broke out of their months-long rut is a good thing. If you’ve been feeling stuck, this could make the start of a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, says:

“Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.” 

And that’s gives you more reason to hope than you’ve had in quite some time.

Bottom Line

This is the shift you’ve been waiting for.

Mortgage rates just saw their biggest decline in over a year. And if rates stay near this level, it could make a home you couldn’t afford just a few months ago feel possible again.

What would today’s rates save you on your future monthly payment? Connect with an agent or lender so you can find out.

The post Mortgage Rates Just Saw Their Biggest Drop in a Year appeared first on Platinum Realty Services.

You may be seeing headlines about how foreclosures are rising. And if that makes you nervous that we’re headed for another crash, here’s what you should know. 

According to ATTOM, during the housing crash, over nine million people went through some sort of distressed sale (2007-2011). Last year, there were just over 300,000.

So, even with the increase lately, we’re talking about numbers that are dramatically lower. But what does the future hold? Is a wave coming? The short answer is, no.

Here’s why. Experts in the industry look at mortgage delinquencies (loans that are more than 30 days past due) as an early sign for potential foreclosures down the line. And the latest data for delinquencies is reassuring about the market overall.

Right now, delinquencies as a whole are consistent with where we ended last year, which means we’re not seeing the kind of increase that would signal widespread trouble.

But there are some key indicators to continue to watch. Marina Walsh, Vice President of Industry Analysis at the Mortgage Bankers Association, explains:

“While overall mortgage delinquencies are relatively flat compared to last year, the composition has changed.”

Right now, borrowers with FHA mortgages currently make up the biggest share of new delinquencies (see graph below):

And here’s why that may be happening. Borrowers with FHA mortgages may be more sensitive to shifts in the economy. And with recession fears, stubborn inflation, employment challenges, and more, it makes sense this segment of the market may be feeling it a bit more. But that doesn’t mean it’s a signal a crash is coming.

If you look back at the graph, it shows, while there are more FHA loans experiencing hardship than the norm, delinquency rates for other loan types remain low and stable. Back during the crash, delinquency rates were significantly elevated for all 4 categories.

That means the broader mortgage market is on much stronger footing than it was back in 2008. As ResiClub says:

“The recent uptick in mortgage delinquency seems to be concentrated among FHA borrowers, however, mortgage performance remains very solid when viewed in light of the twenty-year history of our data.”

The Region with the Most FHA Loans

Here’s another reason this isn’t a signal of trouble ahead. FHA loans only make up about 12% of all home loans nationwide. But like anything else in housing, local data matters. There are some regions of the country where there are more of this type of loan than others, particularly the South.

The map below does not show how many FHA loans are delinquent. It just shows the overall concentration of FHA loans by state, so you can see which regions have the greatest volume (see map below):

As the Federal Reserve Bank of New York explains:

“Looking at geographic concentrations of loans, recent data indicate that a higher proportion of mortgage balances are delinquent in many of the southern states . . . we see that higher delinquency rates coincide with a higher share of FHA loans across states.”

Just remember, even the delinquencies rates we’re seeing now aren’t as high as they were in 2008. Again, this is not a signal of a crisis. But it is something experts will monitor in the months ahead. 

If You’re Experiencing Financial Hardship

No one wants to see anyone face the challenges of foreclosure. But just know that, if you’re a homeowner struggling with payments, you’re not alone – and you do have options.

The first step is reaching out to your mortgage provider. In many cases, you may be able to set up a repayment plan or explore loan modifications to help you stay on track. And for many homeowners today, you may also have enough equity to sell your house and avoid foreclosure. Odds are, at least some of these delinquencies will go that route since homeowners today have near record amounts of equity in their homes. It may be worth seeing if that could be an option for you too.

Bottom Line

Foreclosures are rising slightly, but they’re nowhere near the levels of 2008. And delinquency trends don’t point to a crash ahead.

This is something industry professionals are going to watch in the days ahead. If you want to stay up to date, connect with an agent or lender so you always have the latest information.

The post What Mortgage Delinquencies Tell Us About the Future of Foreclosures appeared first on Platinum Realty Services.

Now that the market is slowing down, homeowners who haven’t sold at the price they were hoping for are increasingly pulling their homes off the market. According to the latest data from Realtor.com, the number of homeowners taking their homes off the market is up 38% since the start of this year and 48% since the same time last June. For every 100 new listings in June, about 21 homes were taken off the market.

And if you’ve made that same choice, you’re probably frustrated things didn’t go the way you wanted. It’s hard when you feel like the market isn’t working with you. But while slowdowns can be painful in the moment, history tells us they don’t last forever.

History Repeats Itself: Proof from the Past

This isn’t the first time the housing market has experienced a slowdown. Here are some other notable times when home sales dropped significantly:

• 1980s: When mortgage rates climbed past 18%, buyers stopped cold. Sales crawled for years. But as soon as rates came down, sales surged back, and the market found its footing again.
• 2008: The Great Financial Crisis was one of the toughest housing downturns in history. Sales and prices both dropped hard. Still, sales rebounded once the economy recovered.
• 2020: During COVID, sales disappeared overnight, and many people had to put their plans on hold. Yet the recovery was faster than anyone expected, with a surge of buyers re-entering the market as soon as restrictions eased.

The lesson is clear: no matter the cause, the market always rebounds.

Today’s Situation: Where We Stand Now

Over the past few years, home sales have been sluggish. And one big reason why is affordability. Mortgage rates rose at a record-breaking pace in 2022, and home prices were climbing at the same time. That combination put buying out of reach for many people. And when demand slows, home sales do too.

The Outlook: Why Things Will Improve

But here’s the encouraging part. Forecasts show sales are expected to pick up again moving into 2026.

Last year, just about 4 million homes sold (shown in gray in the graph below). And this year is looking very similar (shown in blue). But the average of the latest forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) show the experts believe there will be around 4.6 million home sales in 2026 (shown in green).

And a big reason behind that projection is the expectation that mortgage rates will come down a bit, making it easier for more buyers to jump back in.

That means what’s happening now is part of a cycle we’ve seen before. Every slowdown in the past has eventually given way to more activity, and this one will too.

Just like the 1980s, 2008, and 2020, today’s dip in home sales is temporary.

What That Means for You

If you’ve paused your moving plans, you did what you thought was right. Your frustration is valid. But it’s also important to remember the bigger picture. Housing slowdowns don’t last forever.

That’s where your local real estate agent comes in. Their job is to keep a close eye on the market for you. When the first signs of a rebound appear, they’ll help you spot the shift early so you can relist with confidence.

Bottom Line

If today’s housing market feels stuck, remember it’s never stayed down for good. Slowdowns end, activity returns, and people get moving again. So, connect with a local real estate agent, because when the next wave of buyers shows up, you won’t want to miss it.

As activity picks up again, will you be ready to put your house back on the market, or do you need to move sooner?

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