Тhe narrative of the U.S. housing market has been one of “locked-in” stability for many years. We’ve been told that the market is shielded from the kind of systemic collapse witnessed in 2008 because millions of homeowners secured sub-3% interest rates during the pandemic. But a new, quieter crisis is brewing in the shadows of the suburbs — one that doesn’t involve the 3% rate-locked elite, but rather the strivers who entered the market in 2023.
A detailed evaluation of nationwide loan data from 2023 originations of Federal Housing Administration (FHA) loans reveals a startling reality: A significant percentage of these homeowners have been falling behind on their mortgages.
These borrowers have been forced to take out second, t...
