Fox Business Reports Home Foreclosures Are Up 34% Across The US As Americans Grapple With Cost-Of-Living Crisis
Fox Business is reporting that home foreclosures are on the rise. This is due to Americans grappling with the ongoing cost-of-living crisis.
That is according to a new report published by real estate data provider ATTOM. The ATTOM report found that foreclosure filings surged 28% in the third quarter to 124,539. This includes default notices and scheduled auctions. In addition, it also includes bank repossessions.
The report also indicated that there were 37,679 properties with foreclosure filings in September. This is an increase of 11% from the previous month and up 18% from 2022.
Foreclosures are on the rise. However, they remain well below the levels recorded during the 2008 financial crisis.
However, the problem may soon get worse. This is due to the resumption of student loan payments.
Real estate experts are bracing for this to the market.
A Pulsenomics poll showed that the resumption of student loan payments will affect homeownership rates for at least a year. However, may real estate experts predict the impact could be felt longer than that.
The poll showed that 75% of the respondents said payments will have a negative effect on homeownership that lasts for a year or more. However, 40% of respondents predicted an impact of at least three years.
On top of that, many of the economists believe the resumption of payments would cause an uptick in the delinquency rate.
About 44 million US borrowers were affected by the payment pause.
Collectively, borrowers are to resume paying about $10 billion a month, according to an analysis from JPMorgan.
The potential hit comes at an already precarious time for the housing market. In fact, housing affordability is worse today than during the peak of the 2008 housing bubble.
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