The U.S. housing market is going through a difficult time: in August, banks repossessed 5,794 homes over unpaid debts — 42% more than a year earlier.
More than 40,000 households have faced foreclosure proceedings because of missed payments. Meanwhile, mortgage rates have climbed from 2.65% in January 2021 to nearly 7.60% today.
In the first half of 2026, the number of homes actually repossessed by banks rose by 33%, while the number of new foreclosure cases increased by 7%.
The scale of the situation has not yet reached the levels of the 2008 crisis, but further increases in mortgage rates could make life significantly harder for American families.
According to Bloomberg, mortgage rates in the country have reached 7.49% — their highest level in nearly three years.
Applications to purchase homes fell by 2.1%, dropping to their lowest level in more than a year, while refinancing applications declined by 7.5%.
More than 40,000 households have faced foreclosure proceedings because of missed payments. Meanwhile, mortgage rates have climbed from 2.65% in January 2021 to nearly 7.60% today.
In the first half of 2026, the number of homes actually repossessed by banks rose by 33%, while the number of new foreclosure cases increased by 7%.
The scale of the situation has not yet reached the levels of the 2008 crisis, but further increases in mortgage rates could make life significantly harder for American families.
According to Bloomberg, mortgage rates in the country have reached 7.49% — their highest level in nearly three years.
Applications to purchase homes fell by 2.1%, dropping to their lowest level in more than a year, while refinancing applications declined by 7.5%.