Even though inflation is cooling down, many people are still feeling the squeeze when it comes to their wallets. High costs on everything from gas to groceries are making some folks worry that we might see more people struggling to keep up with their mortgage payments. But does that mean we’re on the brink of a foreclosure wave? Not likely.

Let’s break down why the experts and the numbers say we’re in the clear.

Most Homeowners Are Keeping Up with Their Mortgages

Back during the last housing crash, a lot of foreclosures happened because it was way too easy for people to get mortgages, even when they couldn’t really afford them. Lenders weren’t as strict about checking things like credit scores, income, job status, or debt levels.

But things are different now. Lending standards are much tighter, meaning banks and lenders are more careful about who they approve for a mortgage. This change means we have more qualified buyers today, and they’re less likely to fall behind on their payments.

That’s why, according to data from Freddie Mac and Fannie Mae, the number of homeowners seriously behind on their mortgage payments (a.k.a. delinquencies) has been on the decline. It’s a good sign that borrowers are not only more qualified, but they’re also finding ways to manage any financial hiccups, like exploring repayment options or tapping into the record equity in their homes to sell before things get bad.

Bottom Line: No Foreclosure Wave in Sight

For foreclosures to spike, we’d need to see a big jump in the number of people unable to make their mortgage payments. But with so many buyers keeping up with their payments and homeowners sitting on significant equity, a foreclosure wave isn’t in the cards.

Bill McBride of Calculated Risk, a housing market expert who saw the 2008 foreclosure crisis coming, puts it simply:

“We will NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble) for two key reasons: 1) mortgage lending has been solid, and 2) most homeowners have substantial equity in their homes.”

So, if you’re worried about another foreclosure crisis, relax. The data shows that today’s homeowners are in a much stronger position, and that’s keeping foreclosure numbers low.