Risk to the housing market? FHA delinquencies on the rise

by Caitlin McKeague

Are rising FHA loan delinquencies the next warning sign for a housing market crash? In today’s Phoenix housing market update, we break down what the latest FHA delinquency data actually shows — and why the headlines don’t tell the full story. FHA loans always carry higher risk, but are they truly signaling a bubble… or just returning to normal levels?

We look at how 90-day FHA delinquency rates compare to subprime loans, how today’s numbers stack up against the Great Financial Crisis, and what the Cromford Report says about real red flags to watch for. The short version: risk is rising, but it is nowhere near dangerous territory.

I also cover a major shift happening in the market right now: a record number of canceled listings. Sellers across the country — and here in Phoenix — are pulling their homes off the market rather than accepting lower offers. What does that mean for buyers? For sellers? And how does rising demand and falling supply change the outlook heading into 2026?