U.S. Foreclosures Jump 26% As Indiana Records Highest Rate
U.S. foreclosure filings rose 26% in the first quarter of 2026, with 118,727 properties receiving filings and Indiana posting the nation's highest foreclosure rate.[1]
Indiana had one foreclosure filing for every 739 housing units in Q1 2026, followed by South Carolina at one in 743 and Florida at one in 750.[1] Foreclosure starts reached 82,631 properties in Q1 2026, up 20% year over year, while lender repossessions climbed to 14,020, a 45% increase.[1]
The average 30-year fixed mortgage rate was 6.37% for the week ending May 7, 2026, compared with 5.98% in late February.[1] Higher rates raise monthly payments and limit refinancing options, which can increase default risk for borrowers with thin equity.
The Q1 total was also 6% higher than Q4 2025, signaling a recent acceleration.[1] If mortgage rates remain elevated, analysts warn foreclosures could continue to climb and add further strain to vulnerable local housing markets.
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📌 Key Facts
- In Q1 2026, 118,727 U.S. properties received foreclosure filings, up 26% year-over-year and 6% from Q4 2025.
- Indiana had one foreclosure filing for every 739 housing units in Q1 2026, the highest rate in the nation.
- South Carolina and Florida followed with foreclosure filings on one in every 743 and one in every 750 housing units, respectively, in Q1 2026.
- Foreclosure starts reached 82,631 properties in Q1 2026, up 20% from a year earlier, and lender repossessions totaled 14,020, up 45%.
- The average 30-year fixed mortgage rate was 6.37% for the week ending May 7, 2026, compared with 5.98% in late February.
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