The number of home foreclosures in the U.S. rose by 4% in October compared to the previous month, according to a report from real estate data firm ATTOM. This comes despite the Federal Reserve’s recent 0.5% interest rate cut in September, as rising mortgage rates continue to strain homeowners.

ATTOM reported that there were 30,784 foreclosures nationwide in October, up 4% month-over-month but down 11% year-over-year. Foreclosure processes include default notices, auctions, and bank repossessions.

States with the Highest Foreclosure Rates
Nevada topped the list with 1 foreclosure per 2,741 housing units, followed by New Jersey, Florida, California, and South Carolina. Among major metropolitan areas, Riverside, California, had the highest rate at 1 in every 1,978 housing units.

California also recorded the highest number of new foreclosures in October, with 2,915 cases, followed by Texas (2,282) and Florida (2,227).

Rising Mortgage Rates and Market Uncertainty
Despite the Federal Reserve’s rate cuts, mortgage rates have risen sharply, reaching 6.78% as of November 14. This has further constrained the housing market, with September home sales falling to their lowest level in 14 years.

Experts note that foreclosure activity might slow seasonally, but economic uncertainty and high mortgage rates are expected to keep the market unstable.

ATTOM CEO Rob Barber emphasized the need for close monitoring of foreclosure trends in key states like California, Texas, and Florida, particularly as policy shifts under the Trump administration could impact inflation and interest rates.

Foreclosure levels and broader economic uncertainty highlight potential challenges for homeowners and the housing market in 2024.

<Hongyong Park>