It appears more people are defaulting on their mortgages.
According to a a property data analysis firm, there were more than 35,000 foreclosure filings in May, an increase of 7% from the month prior.
One out of about 4,000 homes nationwide were in foreclosure in May, the report states.
Illinois, Maryland and New Jersey were the three states with the highest foreclosure rates, according to the study.
“The recent increase in foreclosure filings nationwide indicates a trend that has been observed throughout the year, and what we have expected to occur,” said Rob Barber, CEO at ATTOM.
The real estate market is tricky right now as consumers deal with rising costs and rising interest rates.
People looking to purchase a new home are facing interest rates 1.5 percentage points higher than a year ago. The average interest rate is currently 6.71% for a 30-year mortgage. “Mortgage rates decreased after a three-week climb,” said Sam Khater, Freddie Mac’s chief economist. “While elevated rates and other affordability challenges remain, inventory continues to be the biggest obstacle for prospective homebuyers.”
The issued a report Thursday that said middle-income buyers face the largest shortage of homes. The association said that more than 300,000 homes, listed for no more than $256,000, are needed to meet the demand.