Home foreclosures increased once more in February as Americans continue to wrestle with the persistent cost-of-living challenges, Fox Business reported.
According to a recent report from real estate data provider ATTOM, 32,938 properties had foreclosure filings in February, including default notices, scheduled auctions, and bank repossessions. This figure reflects an 8 percent rise from the previous year, though it is down 1 percent from the preceding month, the outlet noted, citing the data.
“The annual uptick in U.S. foreclosure activity hints at shifting dynamics within the housing market,” said ATTOM CEO Rob Barber. “These trends could signify evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices.”
Nevertheless, foreclosure completions decreased in 28 states during February. Lenders repossessed 3,397 properties in February, marking a 14 percent decline from the previous month and an 11 percent decrease from the prior year. The most significant reductions occurred in Georgia, with a 52 percent decrease, and New York, experiencing a decline of 41 percent.
However, foreclosures surged in several other states. South Carolina experienced a 51 percent increase, Missouri saw a 50 percent jump, and Pennsylvania witnessed a 46 percent rise. Texas noted a 7 percent increase in foreclosures, while Indiana saw a more modest climb of 0.8 percent.
“Although foreclosures are rising, they remain well below the levels recorded during the 2008 financial crisis,” Fox Business reported. “But the problem could soon get worse as high home prices, mortgage rates and property taxes bite Americans.”
Housing affordability has reached its lowest point in decades due to a surge in home prices and mortgage rates. This combined effect has pushed the typical salary required nationwide for homeownership up to $106,500, marking a remarkable 61% increase from the $59,000 required just four years ago, as reported by Zillow.
There are many reasons for the housing affordability crisis, the outlet reported.
The Federal Reserve’s robust interest rate hike initiative propelled mortgage rates to climb above 8 percent for the first time in almost two decades last year. Despite initial expectations for a quick reversal, rates have remained stubbornly high, lingering around 7 percent. That persistence is attributed to hotter-than-anticipated inflation figures, which have dashed investors’ aspirations for immediate rate reductions.
“The average rate for a 30-year fixed loan rose to 6.74% this week, Freddie Mac reported, well above the pandemic-era lows of 3%,” Fox Business noted.
Most Americans have ranked the economy and their own personal finances as the number one concern going into the 2024 election, which does not bode well for President Biden.
