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- Foreclosure rates in the country are modest. Yet, in some cities, foreclosure rates are high.
The massive number of foreclosures during the housing crisis from 2008 to 2010 turned into a housing boom a decade later. By 2020, home prices remained affordable, and mortgage rates dropped near all-time lows. The rates on 30-year fixed mortgages fell to 3%. This is the hottest housing market in America.
The housing market has changed sharply again in the last year. Inventory has collapsed as people hold on to houses with low mortgage rates. People who want a home have to pay 7% for a mortgage, significantly raising ownership costs. The National Association of Realtors recently said inventory continued to shrink, which helped prices rise to an all-time high of $419,300 in May. Lawrence Yun, NAR’s chief economist, told The Wall Street Journal, “Somewhat of a strange phenomenon, where we have low home-sales activity, yet prices are hitting record highs. Affordability is a challenge.”
Foreclosures remain a major problem in some cities. According to the May ATTOM US Foreclosure Market Report, one in every 4,320 housing units nationwide had a foreclosure filing (default notices, scheduled auctions, or bank repossessions). Of the 224 metro areas, the highest number was Longview, Texas, where one in every 1,162 housing units has a foreclosure filing.
Longview was followed by Trenton, N.J. (one in 1,471), Atlantic City, N.J. (one in every 1,569), and Lakeland, Fla. (one in every 1,584).
Longview is in East Texas, near the Louisiana border. The city, which has a population of 82,176, is usually poor. The poverty rate is 17.1%, well above the national average. The median household income, at $61,003, is below the national number.
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