What Mortgage Delinquencies Reveal About the Outlook for Foreclosures

With news of rising foreclosures making headlines, many worry we’re headed for another housing crash. But the numbers tell a different story.

Compared to the 9 million distressed sales during the 2008 crisis, today’s foreclosures are just a fraction—around 300,000 in the past year. Mortgage delinquencies (late payments) are one of the best indicators of future foreclosures, and right now, rates remain stable and even improved slightly in 2025.

The main shift comes from FHA loans, which make up about 12% of all mortgages. These borrowers—often first-time or lower-income buyers—are more vulnerable to financial pressures like inflation, job changes, or rising insurance costs. While FHA delinquency rates are climbing, conventional and VA loan performance remains steady, keeping the overall housing market on solid footing.

In short: we’re not seeing a foreclosure wave ahead. While some homeowners—especially those with FHA loans—may feel added pressure, today’s market is far healthier than during the last crash. Most homeowners also have significant equity, giving them options if they face challenges.