Is the Housing Market Sending Us a Warning?
Sometimes the most revealing market signals come not from Wall Street or the Federal Reserve but from everyday behavior. Recently, one of those signals showed up in Google searches. The phrase “help with mortgage” has spiked to its highest level since 2009. On its own, that might not seem like a cause for alarm as people search for mortgage help for all kinds of reasons, from looking for better financing to exploring payment options. But paired with recent foreclosure data and rising delinquency rates, the story begins to take on a different shape.
The surge in searches has caught attention far beyond the mortgage industry, with Senator Elizabeth Warren even highlighting the numbers, warning of affordability concerns. Analysts, however, caution against assuming a repeat of the 2008 crash. They note that overall delinquency is still relatively low, but affordability remains a real problem. For many households, mortgage payments and rents are simply stretching budgets too far and when that stress collides with other debt, like credit cards and short-term loans, the result is a growing sense of financial pressure.
Legal professionals are seeing the impact firsthand. According to LegalShield, foreclosure-related legal inquiries rose nearly 30 percent in the second quarter of this year. Their analysis points to a common theme: debt is at the heart of consumer stress; Mortgage delinquencies are also ticking upward. The Mortgage Bankers Association reported a 4.04 percent delinquency rate on residential properties in the first quarter, with foreclosure actions also inching higher. While these numbers remain below historical averages, they reveal a slow but steady trend that should be tracked.
Foreclosure filings are rising in certain markets as well. Data firm ATTOM reported a 13 percent increase nationwide in July, compared with the year before. This climb does not suggest a housing collapse by any means, but it does suggest that pressure is building unevenly across the country. For investors and brokers, these local shifts matter more than national averages, since by the time the headlines reflect trouble, the best opportunities may already be gone.
Still, today’s housing landscape looks very different from 2008, with the majority of homeowners having fixed rates under 6%, which makes them far less vulnerable to sudden payment shocks. Regulations now require loan Servicers to explore loss mitigation before moving to foreclosure, giving borrowers more chances to stabilize their loans. And homeowners are sitting on record amounts of equity, with nearly 48 million mortgage holders having tappable equity, averaging over $200,000 each. That equity provides breathing room that can keep many families from sliding into foreclosure, at least in the short term!
Of course, equity can also be misused. Refinances recently reached their highest level since 2022, with many borrowers tapping into their homes for relief. Done wisely, this equity can buy time and stability, but done poorly, it can add debt and lead to greater stress down the road. The difference often comes down to planning and guidance!
For borrowers, the lesson is to stay informed and seek solutions before stress turns into crisis. For brokers, it means helping clients read the signs early, whether that is exploring private money options, restructuring debt, or simply preparing for what may come. For investors, it means watching the signals carefully, knowing that opportunities often appear first in the margins before they make headlines.
Bottom line: At Pacific Direct Mortgage, we believe knowledge and preparation are the best defenses at any time. Whether you’re a borrower facing higher payments, a broker guiding clients through difficult choices, or an investor watching for early signs of distress, our team is here to provide flexible private money solutions that meet today’s challenges head on. With our experience and direct lending approach, you can move forward with confidence no matter what the market brings.
Husband & Wife Team Phone: 707‑708‑0797 / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401 Ken: CA DRE Broker #01858042 / NMLS #1221130 Ari: CA DRE #01858152 / NMLS #2170867 Ken & Ari are a husband & wife team with combined 3+ decades in real estate and private money industries. They own Pacific Direct Mortgage & Real Estate, specializing in Private Money loans (also known as Hard Money home loans). Having helped thousands of Borrowers & working directly with Brokers, Agents and Lenders to help when needed with fast, flexible, alternative financing for real estate purchases and refinances throughout California. No issues with DTI ratios, credit issues, property condition, difficult to prove income ‑ we want to help!
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