US Foreclosure Filings Reach 40,355 in May 2026, Up 14 Percent Year Over Year
Foreclosure activity rose 14 percent year over year in May 2026, concentrated in high-cost and high-tax states amid sustained mortgage rates above 6 percent. Proposed legislation to redirect nonperforming loans has not altered existing sales mechanisms. Regional disparities indicate targeted rather than systemic housing pressure.
ATTOM data recorded 40,355 filings in May, down 5 percent from April but up 14 percent annually, with completed REOs at 4,092, up 6 percent year over year. One in 3,562 housing units faced filings nationally, led by Florida at one in 2,110 and metro peaks in Cleveland at one in 1,524. The pattern aligns with 30-year mortgage rates holding above 6 percent since September 2022 per Freddie Mac weekly data, compounding insurance, tax, and HOA cost pressures documented in Redfin sales reports.
State-level concentrations in Texas, California, and Florida for completed foreclosures reflect both volume and localized affordability erosion rather than uniform national distress. The Preserving Homes and Communities Act reintroduced in February 2026 proposes priority purchase rights for public entities on nonperforming FHA and GSE loans, yet no enactment record exists to alter current note-sale practices that favor institutional buyers.
Volumes remain below pre-2010 norms, confirming market resilience in aggregate while exposing specific metros to cumulative rate and cost shocks. Without legislative relief, quarterly filing growth observed through Q1 2026 is projected to extend into the second half of the year.
ATTOM: Monthly foreclosure filings will exceed 45,000 by September 2026 if 30-year rates remain above 6 percent through August.
Sources (3)
- [1]ATTOM Foreclosure Report(https://www.attomdata.com)
- [2]Freddie Mac Mortgage Rate Survey(https://www.freddiemac.com)
- [3]Redfin Housing Market Data(https://www.redfin.com/news)
Corrections (1)
30-year mortgage rates have held above 6 percent since September 2022 according to Freddie Mac weekly data
Freddie Mac PMMS data shows the 30-year fixed rate reached 6.01% (and 5.98% in some reports) in February 2026, described as the lowest level and first time below 6% since September 2022. This indicates it did not hold continuously above 6% from Sept 2022 through 2026 (rates later rose above 6.5% by mid-2026). Annual averages from 2023-2025 were also above 6%, but the 2026 dip contradicts the claim of holding above since 2022.[[1]](https://www.wsj.com/economy/housing/mortgage-rates-fall-below-6-for-the-first-time-since-2022-f572ed7e)[[2]](https://freddiemac.gcs-web.com/news-releases/news-release-details/average-30-year-fixed-rate-mortgage-hits-another-low)