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Foreclosures rose 7 percent in April as more than 35,000 Americans defaulted on their payments.

Posted by hostabdoIn Last Modified

  • Florida had the most foreclosures in May with 2,901 home invasions.
  • Inflation and rising interest rates are responsible for the cost of living for Americans.



Foreclosures across the country rose 7 percent last month, and were up 14 percent from a year earlier as the cost of living rose.

According to new data from ATTOM, foreclosure-related documents, including pending auctions and bank foreclosures, rose to 35,196 properties.

Florida started 2,901 foreclosures in May.

This was followed by California, with 2,451 foreclosures initiated, and Texas, with 2,286 foreclosures initiated.

“The recent increase in foreclosures nationwide is a trend we’ve seen throughout the year and what we expect to happen,” ATTOM CEO Rob Barber said in a statement.

Barber said, ‘The upward trend indicates the possibility of continued activity, and with foreclosure completions seeing the largest monthly increase this year, we will continue to monitor the impact this may have on the housing market.’

Foreclosures rose 7 percent across the country last month, and were up 14 percent from a year earlier as the cost of living rose.

Despite rising foreclosures, Fitch analysts argue that it is a ‘normal’ process as consumers take advantage of loan forbearance and government aid following record lows during the pandemic.

However, inflation is still accelerating, with the latest figures from the US Bureau of Labor Statistics showing that annual inflation is now at 4.9%.

Although inflation is down from a peak of 9.1 percent in June 2022, it is still putting significant pressure on household finances, which may have contributed to the improvement in households unable to make mortgage payments.

When adjusted for inflation, American workers’ earnings remain below their pre-pandemic peak.

Last month, the epidemic increased the cost of living in Florida, the state with the highest rate of incarceration, with real hourly earnings in the state falling from $25.12 in February 2020 to $24.82 in April, according to an analysis by NBC News.

Interest rates have risen sharply in the past year, with the Federal Reserve’s latest hike in May raising its benchmark rate to 5.25 percent, putting pressure on mortgage rates after a decade of record-low rates.

The Fed has hinted that the rate of inflation should be maintained for a longer period of time to control inflation.

“Foreclosures are increasing, but nothing like we saw when the bubble burst in 2008,” Barber added.

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