According to a report by ATTOM, a leading real estate data firm, the month of March alone saw 35,890 filings – an 11 percent monthly increase. A total of 93,953 U.S. properties faced foreclosure filings between January and March – also an 11 percent increase from the previous quarter.

The uptick signals growing financial distress among homeowners grappling with elevated mortgage rates, which have remained above 6.5 percent for months, squeezing those with variable-rate loans especially hard. While foreclosure levels remain below historic peaks, the trend underscores the lingering pressure of inflation and high borrowing costs. It also highlights regional economic disparities, with states like Delaware, Illinois and Nevada seeing the highest rates.

The rise in foreclosures reflects broader economic headwinds. Homeowners who secured mortgages during years of near-zero interest rates now face steeper payments as refinancing proves unaffordable. (Related: Foreclosures have already begun to surge amid economy-destroying Fed rate hikes.)

ATTOM CEO Rob Barber noted that while strong home equity in many markets has so far prevented a broader crisis, the recent uptick suggests "some homeowners may be starting to feel the pressure of ongoing economic challenges."

Notably, foreclosure starts in the first quarter climbed 14 percent from late 2024 – with Kansas, Delaware and Oklahoma experiencing annual spikes of over 40 percent. Major metro areas including Chicago, New York City and Houston bore the brunt, accounting for the highest raw numbers of filings.

Regional disparities paint a stark picture. Columbia, South Carolina, recorded the highest foreclosure rate nationwide, with one in every 683 housing units affected, followed by Florida's Lakeland and California's Bakersfield and Riverside. These states, already vulnerable due to a mix of economic volatility and natural disasters, highlight the uneven impact of the crisis.

Mortgage meltdown: America's hidden foreclosure fallout

Meanwhile, federal policies have added complexity. The Department of Housing and Urban Development extended foreclosure relief for homeowners with Federal Housing Administration loans in hurricane-affected areas, while the Trump administration drew criticism for ending a program assisting veterans at risk of foreclosure. Lawmakers clashed over the decision, with Democrats warning it would exacerbate housing insecurity among veterans.