Rising ownership costs beyond mortgage rates drive foreclosures to 118,723 properties, the highest since 2020 despite Fed rate cut signals.
US foreclosure filings climbed 26% year-over-year in Q1 2026 to 118,723 properties, the highest level in six years. The increase reflects surging ownership costs, including insurance, property taxes, and utilities, outpacing household wage growth.
Mortgage rates at 6.53% and median home prices of $436,523 have exacerbated affordability challenges. Even homeowners with pandemic-era sub-4% rates face pressure from rising expenses, driven partly by AI data center expansion and infrastructure costs.
March filings reached 45,921, up 18% from February and 28% year-over-year, signaling persistent strain despite expectations of Fed rate cuts in 2025.