More Americans than ever are on the edge of losing their homes

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The Democrats have been pushing policies that have made the cost of everything skyrocket.

Many Americans can’t reach their dream of homeownership because they have been priced out of the market.

But this new report shows that many who thought they had their own home are facing foreclosure.

Foreclosures saw a “notable” increase in January

Americans continue to struggle with inflated prices on everyday essentials, including groceries, utilities, gasoline, and more.

Now, a new report released by real estate data provider ATTOM found that lenders repossessed 3,954 U.S. properties in January.

That number represents a 13% increase from the month prior, making it the first monthly increase in completed foreclosures since July 2023.

ATTOM CEO Rob Barber said, “We observed a slight uptick in foreclosure filings, which may be partially attributed to the typical post-holiday progression of filings through the legal system. However, other external factors may be at play such as escalating interest rates, inflation, employment shifts and other market dynamics.”

The report found that there were also a total of 37,679 properties with foreclosure filings – this term includes things like homeowners receiving default notices, houses that are scheduled for auction, and bank repossessions, all of which were filed in January.

These filings are up 10% from the previous month and up 5% from 2023.

Certain states saw greater increases than others, including Michigan, where completed foreclosures skyrocketed 200%.

Foreclosures also rose in other states, including 47% in Minnesota and 43% in California, while Pennsylvania saw a 36% increase and Missouri saw a 34% increase.

However, while foreclosures are certainly on the rise, they’re still well below the levels that were recorded during the 2008 financial crisis.

On the other hand, high home prices, high mortgage interest rates, and high property taxes could make the current problem much worse in the coming months.

Housing affordability is the worst it has been in decades due to a massive spike in home prices and mortgage rates happening at the same time.

These two factors combined have helped to push the typical amount of average nationwide wages that are required to own a home up to a whopping 33%.

What happened to housing prices?

The housing affordability crisis can’t be attributed to just one thing.

The Federal Reserve’s decision to aggressively hike interest rates sent mortgage rates sky-high to above 8% for the first time in almost 20 years last year.

Those rates have been very slow to abate, as they continue to hover near 7%, thanks to much higher-than-expected inflation data, which crushed investors’ hopes that rate cuts would finally ensue at the beginning of this year.

According to Freddie Mac, the average rate for a 30-year fixed mortgage loan rose to 6.9% this week, which is much higher than the pandemic-era average rate of nearly 3%.

Despite mortgage rates nearly doubling what they were just three years ago, home prices have remained high.

Some of this can be blamed on low housing inventory thanks to sellers who locked in a low rate before the pandemic who continue to remain reluctant to sell.

Informed American will keep you up-to-date on any developments to this ongoing story.