“Mansion Global” host Katrina Campins shares the latest in the real estate market on “The Bottom Line.”
Home foreclosures rose again in February as Americans continued to grapple with the ongoing cost of living crisis.
That’s according to a new report published by real estate data provider ATTOM, which found that there were 32,938 properties filed for foreclosure in February, including notices of default, scheduled auctions, and bank foreclosures. It turned out that it was. It was down 1% month over month but up 8% year over year.
“The year-over-year increase in foreclosure activity in the United States signals a shift in the dynamics of the housing market,” said Rob Barber, CEO of ATTOM. “These trends represent an evolving financial landscape for homeowners, potentially prompting adjustments to market strategies and lending practices.”
However, the number of completed foreclosures decreased in 28 states in February. In February, lenders foreclosed on 3,397 properties, down 14% from the previous month and 11% from the previous year. The biggest declines were in Georgia, where the number of completed foreclosures fell by 52%, and in New York, where the number of completed foreclosures fell by 41%.
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Although the number of foreclosures has increased, they remain well below levels recorded during the 2008 financial crisis. (Photographer: Nathan Howard/Bloomberg via Getty Images / Getty Images)
Still, foreclosures surged in other states. South Carolina saw a 51% increase in foreclosures, Missouri by 50% and Pennsylvania by 46%. Foreclosures in Texas increased by 7% and in Indiana by 0.8%.
Although the number of foreclosures has increased, they remain well below levels recorded during the 2008 financial crisis.
But the problem could soon get worse as Americans struggle with soaring home prices, mortgage rates and property taxes.
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Housing affordability is at its worst in decades due to soaring home prices and mortgage rates. (Orlando Sentinel/Tribune News Service via Getty Images/Getty Images)
Housing affordability is at its worst in decades due to soaring home prices and mortgage rates. Combined, these two raise the standard salary required to own a home nationwide by up to $106,500, a staggering 61% increase from the $59,000 required just four years ago, according to Zillow. This was a significant increase.
There are several reasons for the affordability crisis.
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of federal reserve Thanks to an aggressive interest rate hike campaign, mortgage interest rates exceeded 8% last year for the first time in about 20 years. Interest rates have been slow to retreat, hovering around 7%, as higher-than-expected inflation data dashed investors’ hopes for an immediate rate cut.
A sign outside a home for sale in Atlanta, Georgia on September 6, 2023. (Ilya Nouberge/Bloomberg via Getty Images/Getty Images)
The average interest rate on a 30-year fixed loan rose to 6.74% this week, well above the pandemic-era low of 3%, Freddie Mac reported.
Even though mortgage interest rates are nearly double what they were three years ago, home prices have barely changed.
It is mainly There is a lack of available housing It is for sale. Sellers who had low mortgage rates before the pandemic began are reluctant to sell, leaving eager buyers with few options.
