Sothebys International Realty broker Jenna Stauffer analyzes the US housing market, noting a shift in buyer behavior, in 'Making Money.'
Purchases rose to their highest level in six years in the first half of this year as landlords are in a pinch with increased costs related to insurance and property tax liabilities.
The Wall Street Journal reported that data from Attom shows the number of US properties with foreclosure filings reached nearly 119,000 in the first quarter, a 26% increase from the same period last year.
That number is the highest since the first quarter of 2020, when mortgage relief measures to mitigate the economic impact of the COVID-19 shutdown led to a sharp drop in property purchases.
Analysts noted that the current rate of delinquency represents a return to normal levels before the COVID-19 pandemic, as opposed to a sign of borrowers becoming increasingly financially stressed.
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Homeowners are facing rising costs and foreclosure rates have returned to pre-pandemic levels. (Nathan Howard/Bloomberg via Getty Images)
However, the Journal report said that while many homeowners have low mortgage rates, the rising cost of things like home insurance, property taxes and fees paid by homeowners associations increase the use of debt.
The Insurify report found that the average annual bill of homeowners insurance up $2,948 in 2025, up 12% from 2024, while Atom data showed average property tax burdens rose 3% to $4,427.
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Homeowners face rising costs from property taxes, insurance and neighborhood association fees. (iStock/Getty Images Plus)
Those who bought homes within the last few years may be in a worse situation after buying in high-rises housing pricesas some areas have seen a drop in house prices which may leave some owners underwater.
Homeowners facing financial stress and the risk of foreclosure or foreclosure have fewer options for help than were available a few years ago. pandemic era plans the sun went down.
For example, the Federal Housing Administration (FHA) announced in October that homeowners are limited to using measures such as loan modifications to avoid foreclosure once every 24 months.
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Many programs to help in the prevention of the federal epidemic period have ended. (Getty Images)
Data comes as data shows average monthly payment for all outstanding loans reached a new high at the end of last year, rising to $2,005 in the fourth quarter, according to Realtor.com data.
The uptick covers the entire mortgage portfolio in the US, including a large group of borrowers who took out loans before 2022 and have mortgage rates of 4% or less – while new buyers face much higher payments given the higher mortgage rates.
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The average monthly payment for new home buyers exceeded the $2,000 threshold for the first time in September 2022.
