Recent Home Purchases Underwater - Early Payment Defaults Up - Housing Bubble 2.0 - Housing Crash

We knew something like this was likely. In fact, it was probable but it did not fit into the Housing Narrative at the time. It is clear that Home Buyers who recently purchased homes in 2022 are now experiencing "Equity Risk" based on where the Housing Market is headed and many are already defaulting on their monthly mortgage payments. This should come as no surprise, especially when looking at the amount of defaults associated with FHA/VA loans, since the borrower qualifications for those mortgages are more flexible than other loan programs. This is the flip side of stretching your purchasing ability during peak markets.