The foreclosure rate in the United States has experienced significant fluctuations over the past two decades, reaching its peak in 2010 at 2.23 percent following the financial crisis. Since then, the rate has steadily declined, with a notable drop to 0.11 percent in 2021 due to government interventions during the COVID-19 pandemic. In 2024, the rate stood slightly higher at 0.23 percent but remained well below historical averages, indicating a relatively stable housing market. Impact of economic conditions on foreclosures The foreclosure rate is closely tied to broader economic trends and housing market conditions. During the aftermath of the 2008 financial crisis, the share of non-performing mortgage loans climbed significantly, with loans 90 to 180 days past due reaching 4.6 percent. Since then, the share of seriously delinquent loans has dropped notably, demonstrating a substantial improvement in mortgage performance. Among other things, the improved mortgage performance has to do with changes in the mortgage approval process. Homebuyers are subject to much stricter lending standards, such as higher credit score requirements. These changes ensure that borrowers can meet their payment obligations and are at a lower risk of defaulting and losing their home. Challenges for potential homebuyers Despite the low foreclosure rates, potential homebuyers face significant challenges in the current market. Homebuyer sentiment worsened substantially in 2021 and remained low across all age groups through 2024, with the 45 to 64 age group expressing the most negative outlook. Factors contributing to this sentiment include high housing costs and various financial obligations. For instance, in 2023, 52 percent of non-homeowners reported that student loan expenses hindered their ability to save for a down payment.

The number of properties with foreclosure filings in the United States rose in 2023, but remained below the pre-pandemic level. Foreclosure filings were reported on approximately 357,000 properties, which was about 33,000 more than in 2022. Despite the increase, 2023 saw one of the lowest foreclosure rates on record.

In the second quarter of 2024, the share of mortgage loans in the foreclosure process in the U.S. decreased slightly to 0.43 percent. Following the outbreak of the coronavirus crisis, mortgage delinquency rates spiked to the highest levels since the Subprime mortgage crisis (2007-2010). To prevent further impact on homeowners, Congress passed the CARES Act that provides foreclosure protections for borrowers with federally backed mortgage loans. As a result, the foreclosure rate fell to historically low levels.

This statistic shows the foreclosure rates of subprime conventional loans in the United States from 2000 to 2016. In 2016, 7.2 percent of subprime conventional loans were in foreclosure.

In the second quarter of 2024, the share one-to-four family residential mortgage loans entering the foreclosure process in the U.S. was 0.13 percent. Following the coronavirus pandemic outbreak in 2020, mortgage delinquency rates surged, followed by a gradual decline. Between the second quarter of 2020 and the first quarter of 2022, foreclosures remained at record low levels due to The Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

This statistic presents the share of federal housing administration loans entering the foreclosure process in the United States from 2000 to 2018. The share of federal housing administration loans entering the foreclosure process decreased from 2.3 percent in 2000 to 2 percent in 2018.

Under the effects of the coronavirus pandemic, delinquency rates surged for all loan types in 2020. Nevertheless, due the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), foreclosure rates remained low.

About three percent of U.S. homeowners with a mortgage who were behind on mortgage payments in October 2023 were very likely to face eviction in the next two months due to a foreclosure. Additionally, 18 percent of the respondents were somewhat likely to be evicted. In 2022, the foreclosure rate in the U.S. picked up, after a long period of steady decline after the subprime mortgage crisis.

This statistic presents the share of prime conventional loans in the foreclosure process in the United States from 2005 to 2018. The share of prime conventional loans in the foreclosure process was 0.9 percent in 2005 and it remained the same in 2018. Under the effects of the coronavirus pandemic, delinquency rates surged for all loan types in 2020. Nevertheless, due the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), foreclosure rates remained low.

This statistic shows the foreclosure filings in the United States as of June 2017, by state. South Dakota had the lowest rate with only one in every 24,583 housing units being subject to foreclosure.

The number of foreclosures on rustic and urban properties in Spain has decreased since 2014. In 2022, there were approximately 26,000 foreclosures, with dwellings on urban land accounting for the largest share.

This statistic presents the share of veterans administration loans entering the foreclosure process in the United States from 2000 to 2018. The share of veterans administration loans entering the foreclosure process decreased from 1.5 percent in 2000 to 1.1 percent in 2018.

Under the effects of the coronavirus pandemic, delinquency rates surged for all loan types in 2020. Nevertheless, due the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), foreclosure rates remained low.

The share of non-performing mortgage loans in the United States has declined significantly since the subprime mortgage crisis in 2008. After the burst of the housing bubble, the share of loans which were 90 to 180 days past due date climbed to 4.6 percent. The fourth quarter of 2010 witnessed the highest rate of loans in foreclosure, bankruptcy, or deed-in-lieu, amounting to four percent. In the third quarter of 2024, the foreclosure rate stood at 0.1 percent - the lowest figures on record. Meanwhile, the 30 to 60 days delinquency rate rose to 1.8 percent and the 90 to 180 days delinquency rate rose to 0.7 percent, showing an uptick in the late mortgage payments.

The mortgage delinquency rate for Veterans Administration (VA) loans in the United States has decreased since 2020. Under the effects of the coronavirus pandemic, the mortgage delinquency rate for VA loans spiked from 2.81 percent in the first quarter of 2020 to 8.05 percent in the second quarter of the year. In the second quarter of 2024, the delinquency rate amounted to 4.63 percent. Historically, VA mortgages have significantly lower delinquency rate than conventional mortgages.

This statistic presents the share of subprime conventional loans entering the foreclosure process in the United States from 2000 to 2016. The share of subprime conventional loans entering the foreclosure process decreased from 12.9 percent in 2010 to 4.7 percent in 2016.

This statistic shows the number of properties with foreclosure filings in selected cities in the United States in the first half of 2018. In that period, there were 3,578 properties with foreclosure filings in Philadelphia, Pennsylvania.

This statistic shows the average number of days taken to complete a foreclosure in the United States from the first quarter of 2007 to the third quarter of 2018. In the third quarter of 2018, foreclosures in the U.S. were completed, on average, in 713 days.

As of March 2024, the 30-day delinquency rate for commercial mortgage-backed securities (CMBS) varied per property type. The share of late payments for office CMBS was the highest at over 6.58 percent, about two percentage points higher than the average for all asset classes. A 30-day delinquency refers to payments that are one month late, regardless of how many days the month has. Commercial mortgage-backed securities are fixed-income investment products which are backed by mortgages on commercial property.

The mortgage delinquency rate for Federal Housing Administration (FHA) loans in the United States declined since 2020, when it peaked at 15.65 percent. In the second quarter of 2024, 10.6 percent of FHA loans were delinquent. Historically, FHA mortgages have the highest delinquency rate of all mortgage types.

The share of mortgages in arrears in Canada decreased for the third year in a row in 2022, reaching tan all-time low. As of December 2022, the rate of mortgage arrears was 0.15 percent, down from 0.42 percent in 2009, when the highest rate was observed. Among the different provinces, the arrears rate was the highest in Saskatchewan at 0.63 percent in December 2023.

Between 2015 and 2017, Memphis, Tennessee had the highest eviction rate at 6.1 percent. The metropolitan areas with the next highest eviction rates were Phoenix (Arizona), Atlanta (Georgia), Indianapolis (Indiana) and Dallas (Texas) in that period.

Why do evictions occur? Eviction rate refers to the share of renters who are legally removed from a rental property by their landlord, because rent is overdue, the tenant has breached a condition of the rental agreement or for other legally permitted reasons.

Higher rates in the South and Midwest Eviction rates tend to be higher in the South and Midwest of the country, because median incomes are low and foreclosure rates are high. Vacancy rates are consistently higher in the South and Midwest than in the Northeast and West, which means that landlords cannot afford to be as picky when choosing a tenant in the South and Midwest. Tenants who struggle to pay their rent have a much lower chance of being chosen as tenant in the more competitive rental markets, which also keeps the eviction rates lower in those areas.