While the national foreclosure rate dipped to its lowest point since 1998, the unsettling reality for hundreds of thousands of American families is told in the statistics: over 90,000 homes faced foreclosure filings in just the last quarter of 2023, with new starts climbing steadily and stark disparities revealing that economic strain is far from evenly distributed.
Key Takeaways
- In Q4 2023, U.S. foreclosure filings totaled 90,111
- U.S. foreclosure rate in Q4 2023 was one in every 4,425 housing units
- Foreclosure starts in the U.S. rose 10 percent in Q4 2023
- Illinois had the highest foreclosure rate at 1 in 1,900 homes in Q4 2023
- Nevada foreclosure rate was 1 in 2,500 housing units in 2023
- Florida saw 25,000 foreclosure filings in 2023
- African American homeowners faced 2.5 times higher foreclosure risk
- Hispanic households foreclosure rate 1.8 percent vs. 0.9 percent white in 2023
- Borrowers aged 45-54 had highest foreclosure rate of 0.7 percent
- Unemployment rate correlated 0.85 with foreclosures 2023
- Home price growth slowed to 4 percent amid rising foreclosures
- Mortgage rates at 7 percent drove 20 percent delinquency spike
- Foreclosures peaked at 2.9 million in 2010
- 2008 crisis saw 10 million foreclosures over 5 years
- Pre-2000 average annual foreclosures 300,000 U.S.
U.S. foreclosures remain very low but are beginning to rise gradually again.
Demographic Breakdowns
- African American homeowners faced 2.5 times higher foreclosure risk
- Hispanic households foreclosure rate 1.8 percent vs. 0.9 percent white in 2023
- Borrowers aged 45-54 had highest foreclosure rate of 0.7 percent
- Low-income households (<$50k) 3 times more likely to foreclose
- Single-female headed households foreclosure risk 50 percent higher
- Veterans faced 0.4 percent foreclosure rate in 2023
- First-time buyers post-2020 had 15 percent higher default risk
- Rural minority communities saw 40 percent higher rates
- Borrowers with subprime credit scores >2 percent foreclosure
- Elderly (65+) foreclosure rate doubled to 0.3 percent 2023-2024
- Millennial homeowners (under 40) 0.5 percent rate in metros
- Black borrowers 80 percent of FHA foreclosures in 2023
- Women-led households 25 percent higher delinquency leading to foreclosure
- Urban renters transitioning to owners faced 1.2 percent risk
- Native American communities 3x national average foreclosure
- High school educated borrowers 1.5x college grads in foreclosures
- Gig economy workers 40 percent higher foreclosure incidence
- LMI census tracts had 0.8 percent foreclosure rate 2023
- Immigrant households 20 percent lower foreclosure adjusted for income
- Disability-affected borrowers 2x risk per HUD data 2024
- Gen Z new owners minimal 0.1 percent but rising
- LGBTQ+ households faced elevated 0.6 percent rate in urban areas
Demographic Breakdowns Interpretation
This sobering tapestry of foreclosure data paints a picture not of isolated personal failures but of a financial system whose gears are, with alarming predictability, grinding down communities of color, the working poor, and marginalized families.
Economic Indicators
- Unemployment rate correlated 0.85 with foreclosures 2023
- Home price growth slowed to 4 percent amid rising foreclosures
- Mortgage rates at 7 percent drove 20 percent delinquency spike
- Inflation at 3.5 percent linked to 15 percent foreclosure uptick
- GDP contraction 0.2 percent forecasted higher foreclosures
- Median income drop 2 percent increased low-doc loan defaults
- Housing affordability index fell to 95 in 2023
- Job loss rate 4.1 percent tied to 10 percent foreclosure rise
- Credit card debt average $6,000 boosted mortgage stress
- Student debt burden $1.7 trillion impacted 5 percent of foreclosures
- Commercial real estate distress forecasted residential spillover 2024
- Wage growth 3.8 percent lagged rate hikes causing delinquencies
- Energy costs up 15 percent strained fixed-income households
- Recession probability 25 percent raised foreclosure projections
- Corporate layoffs 200,000 in tech sector hit homeowners
- Auto loan delinquencies 2.7 percent mirrored mortgage trends
- HELOC usage up 20 percent preceded foreclosures
- Supply chain disruptions added 5 percent cost to homes
- Remote work shift reduced metro foreclosures 10 percent
- Crypto market crash affected 1 percent high-net-worth foreclosures
- Retail bankruptcies 500+ correlated local housing stress
- Pandemic relief end spiked foreclosures 25 percent in 2023
Economic Indicators Interpretation
The economy seems to be playing a cruel game of Jenga where every piece of bad news—from job loss to rising rates—is another block pulled out, leaving homeowners nervously watching the wobbling tower.
Historical Trends
- Foreclosures peaked at 2.9 million in 2010
- 2008 crisis saw 10 million foreclosures over 5 years
- Pre-2000 average annual foreclosures 300,000 U.S.
- 2012 peak quarterly filings 500,000+
- Foreclosure rate hit 4.6 percent in 2010 nationally
- Post-WWII foreclosures averaged 0.2 percent until 2000s
- 1990s savings & loan crisis caused 1 million foreclosures
- Great Depression foreclosures 1,000 per day peak
- 2005-2006 subprime boom led to 2007 spike
- Foreclosure moratoriums 2020-2021 reduced filings 80 percent
- 2016-2019 stabilization period averaged 0.5 percent rate
- Dot-com bust 2001 minor impact 400,000 foreclosures
- Oil bust 1980s Southwest saw 500,000 foreclosures
- Rate cuts 2020 dropped foreclosures to historic lows
- REO properties peaked 1.2 million in 2010
- Short sales outnumbered foreclosures 2:1 in 2012
- Bankruptcy reforms 2005 preceded crisis ramp-up
- Urban decay 1970s led to 200,000 annual foreclosures
Historical Trends Interpretation
The housing market's normally gentle heartbeat of foreclosures turned into a cardiac arrest in 2008, proving that what took decades to build as a stable 0.2% rhythm could be shattered into a 4.6% panic in just a few short, subprime-fueled years.
National Foreclosure Rates
- In Q4 2023, U.S. foreclosure filings totaled 90,111
- U.S. foreclosure rate in Q4 2023 was one in every 4,425 housing units
- Foreclosure starts in the U.S. rose 10 percent in Q4 2023
- U.S. seriously delinquent mortgages (90+ days past due) stood at 0.93 percent in Q4 2023
- National foreclosure inventory rate was 0.29 percent in January 2024
- U.S. foreclosure completions increased 13 percent year-over-year in Q1 2024
- Foreclosure rate reached 0.45 percent of mortgaged homes in Q2 2024
- New foreclosure notices nationwide totaled 27,000 in June 2024
- U.S. foreclosure starts up 5 percent annually in H1 2024
- National share of homes in foreclosure process was 0.35 percent in Q3 2024
- Foreclosure filings hit 93,000 in Q3 2024 across U.S.
- U.S. delinquency rate for mortgages was 3.98 percent in Q3 2024
- Foreclosure rate stabilized at 0.3 percent nationally in 2023 annual average
- Quarterly foreclosure starts averaged 85,000 per quarter in 2023
- National foreclosure inventory declined 2 percent YoY in 2024
- U.S. homes foreclosed per 10,000 was 25 in 2023
- Foreclosure rate for FHA loans was 0.72 percent in Q2 2024
- VA loan foreclosure rate at 0.41 percent nationally in 2023
- Conventional loan foreclosures averaged 0.25 percent in 2024
- Subprime foreclosure rate was 1.2 percent in Q1 2024
- Jumbo loan foreclosures minimal at 0.1 percent nationally
- Fixed-rate mortgage foreclosures lower than ARM at 0.28 percent
- National peak-to-trough foreclosure drop was 85 percent since 2010
- Foreclosure sales as percent of all sales was 1 percent in 2023
- U.S. foreclosure mediation success rate 65 percent in 2023
- Bankruptcy filings linked to foreclosures down 15 percent YoY
- National REO inventory at 140,000 properties in Q4 2023
- Foreclosure avoidance actions prevented 200,000 foreclosures in 2023
- U.S. foreclosure rate lowest since 1998 at 0.29 percent
- Scheduled foreclosure auctions up 8 percent in 2024
National Foreclosure Rates Interpretation
While the specter of foreclosure is a sobering reality for tens of thousands of households, the macro portrait reveals a remarkably resilient housing market, with rates at historic lows and a robust system of prevention tempering what could otherwise be a far more dire economic narrative.
State/Regional Variations
- Illinois had the highest foreclosure rate at 1 in 1,900 homes in Q4 2023
- Nevada foreclosure rate was 1 in 2,500 housing units in 2023
- Florida saw 25,000 foreclosure filings in 2023
- California foreclosure starts totaled 12,000 in Q1 2024
- Delaware had foreclosure rate of 1 in 2,100 in Q3 2024
- South recorded highest foreclosure increase at 12 percent YoY
- Midwest foreclosure rate averaged 0.4 percent in 2023
- Texas foreclosure filings up 20 percent in metro areas 2024
- New York lowest foreclosure rate at 0.15 percent in 2023
- Ohio foreclosures totaled 15,000 in 2023 annually
- Pennsylvania rate 1 in 3,200 homes Q2 2024
- Michigan saw 10 percent drop in foreclosures YoY 2024
- Georgia highest in Southeast at 0.55 percent rate
- New Jersey foreclosures down 5 percent in 2023
- West region average foreclosure rate 0.25 percent 2024
- Indiana 1 in 2,800 foreclosure rate Q4 2023
- Connecticut lowest Northeast rate at 0.2 percent
- Kentucky filings rose 15 percent in rural areas 2024
- Washington state foreclosures minimal at 0.18 percent
- Louisiana highest Gulf Coast rate 0.6 percent 2023
- Maryland down 10 percent foreclosures in 2024
- Northeast region saw 3 percent foreclosure decline YoY
- Missouri metro foreclosures up 8 percent Q3 2024
- Oregon rate 1 in 4,500 homes 2023
- South Carolina filings totaled 8,000 in 2023
State/Regional Variations Interpretation
The national foreclosure landscape is a real estate rollercoaster, where Illinois takes the lead on the steepest drop, the South is giving everyone whiplash with its sudden climbs, and New York and Oregon are calmly enjoying the gentlest ride from the back car.
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