Seems like prices are riding the wave – up for groceries and gas. And now, some folks are having a sandy thought that others might be caught in a tide of mortgage troubles, leading to a bit of a "beachfront property shuffle." But hey, before we grab our snorkels, let's ride this tide with a splash of caution!
Remember our beachside expert pal, Bill McBride? He totally caught those 2008 riptides. But this time, he's got a new forecast – "Nope, the tides have changed."
Why's the Tide Different?
Back when beach parties were wild in 2008, getting a loan was like catching seashells – too easy. Now, it's like following a treasure map – a bit more challenging. People getting loans are like seasoned surfers. Not many are getting wiped out by missed payments (see graph below).
Riding the Loan Waves: New Style
Lenders are like the lifeguards who've upgraded their whistles. They're checking if everyone's got their floaties before diving into the loan sea. For a massive wave of homes being taken to hit, more folks would need to be doing the "help, I'm drifting away" dance with payments. But guess what? Most beach bums are riding high, paying their mortgage like sun-soaked champs.
Wrap it up in a Beach Towel
No need to sound the seagull alarm. The data isn't painting a picture of a beach party gone wild. People with loans are riding the loan waves gracefully.
Until next time, keep riding those waves and soaking up the sun!