According to a recent report published by real estate data provider ATTOM, home foreclosures in the United States have increased once again in February, amidst the ongoing cost-of-living crisis faced by Americans. The report reveals that there were 32,938 properties with foreclosure filings, including default notices, scheduled auctions, and bank repossessions. This marks an 8% increase compared to the previous year, although it is down 1% from the previous month.

ATTOM CEO Rob Barber suggests that the rise in U.S. foreclosure activity may reflect shifting dynamics within the housing market, indicating changing financial landscapes for homeowners and prompting adjustments in market strategies and lending practices.

Despite the increase, it is important to note that current foreclosure levels remain significantly lower than those recorded during the 2008 financial crisis. In fact, the number of completed foreclosures decreased in 28 states during February. Lenders repossessed 3,397 properties, representing a 14% decrease from the previous month and an 11% decrease from the prior year. Notably, states like Georgia and New York experienced significant declines of 52% and 41% in completed foreclosures, respectively.

However, the situation worsened in other states, with South Carolina witnessing a 51% surge in foreclosures, closely followed by Missouri with a 50% increase, Pennsylvania with a 46% rise, Texas with a 7% hike, and Indiana with a more modest 0.8% climb.

Experts warn that the housing affordability crisis could worsen as soaring home prices, mortgage rates, and property taxes affect Americans nationwide. Housing affordability is currently at its worst in decades, with the typical salary required for homeownership increasing to $106,500, which is a staggering 61% higher than four years ago, according to Zillow.

Several factors contribute to the affordability crisis. The Federal Reserve's aggressive interest-rate hike campaign has caused mortgage rates to soar above 8% for the first time in nearly two decades. Although rates have slightly decreased, they still hover around 7%. Additionally, the lack of available homes for sale has contributed to stagnant home prices. Sellers who locked in low mortgage rates before the pandemic have been hesitant to sell, reducing options for potential buyers.

While the increase in home foreclosures highlights the challenges faced by homeowners, industry professionals and policymakers must address the affordability crisis and work towards sustainable solutions in the housing market.