U.S. home foreclosure rate rises to five-year high

Foreclosures are rising again. But don't call it 2008. About 188,000 homes landed in foreclosure in the first half of 2025, ticking up 6% from last year to the highest tally since 2019, according to ATTOM. ⁠

⁠Illinois and Delaware share the dubious honor of the highest foreclosure rates, while Alaska and Rhode Island top the growth charts, with filings spiking 55% and 51%, respectively.⁠

⁠Nationwide, the number of home purchase loans with a higher principal than the home's market value is creeping up, signaling that those who purchased houses during the recent peak pandemic years may have seen their homes’ values drop.⁠

⁠Still, experts don't expect a 2008-style meltdown. Economists say stricter lending rules should keep the crisis contained. In other words: More homeowners are underwater, but the boat isn't sinking just yet.⁠

⁠HOWEVER: 

The New York-New Jersey region, the largest metro area in the country, saw filings plunge by about 15 percent annually — about 7 percentage points smaller than the decrease from 2023 to 2024. The foreclosure rate in this area in the first half of the year came in at 0.13 percent.