Foreclosure Rates Unlike 2008 Crash

Dated: April 24 2024

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Recent news may have alarmed you about rising foreclosure rates in today's housing market, especially if you lived through the 2008 crash. However, the current situation isn't comparable to that crisis. While foreclosures have increased, it's crucial to understand the context.

In 2020 and 2021, foreclosure rates were artificially low due to moratoriums and forbearance programs. With these measures ending, it's natural to see an uptick in foreclosures. But this increase isn't indicative of a market collapse.

Comparing today's numbers to the 2008 crisis reveals a stark difference. The graph from ATTOM, a property data provider, shows consistently lower foreclosure activity since 2008. Unlike the past, where millions faced foreclosure, today's homeowners generally have significant equity in their homes, protecting them from foreclosure.

In essence, the current foreclosure activity isn't reminiscent of the 2008 crash. The market is fundamentally different, with homeowners in a much stronger position. So while foreclosures may rise, it's not a sign of impending disaster for home prices.

In conclusion, it's crucial to contextualize the data. While foreclosures are increasing, they're not at crisis levels and won't lead to a housing market crash.

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