Foreclosures at a Six-Year High

https://www.wsj.com/economy/housing/high-housing-costs-are-pushing-foreclosures-to-a-six-year-high-266c56c0

Homes with foreclosure filings jump 26% in first quarter, partly reflecting rising property taxes and insurance premiums

3 Likes

There is something else at work here. First the filings are off a low base.

Second the sales price of housing has been declining. This does not hurt a person that is not moving and has a 3 percent mortgage. The problem comes when people are required to sell. Divorce, job relocation, sickness life in general. Typically for a U.S. person this need to move happens in roughly a 5 year cycle.

When one has to sell and they have negative equity, it leads to foreclosure.

I expected this and expect it to accelerate.

Cheers
Qazulight

2 Likes