Foreclosures Spike in October - Concerning?

According to CNBC, foreclosure filings are increasing in the US. Our summary and thoughts below. 

CNBC Article 

After years of unusually low foreclosure activity, new data show that U.S. homeowners are beginning to feel strain — and the housing market may be showing fresh signs of distress.

Key Takeaways

• U.S. foreclosure filings surged by about 20 % year-over-year in October 2025, according to property-data provider ATTOM. 

• While still far below the levels seen during the 2008 financial crisis, this uptick signals borrower stress is rising. 

• Areas hit hardest include states where home-values have pulled back and cost burdens are rising — particularly in parts of Florida and Texas. 

What’s Driving the Rise?

• High mortgage rates (the 30-year fixed rate remains above 6 %) make refinancing or moving more expensive for many homeowners. 

• Inflation, rising homeowner-insurance premiums, high property taxes and other cost pressures are squeezing household budgets. 

• Earlier-buyers in high-cost markets are now finding themselves in negative-equity or near-problem situations as some home-prices decline or stall. 

Why It Matters

• The housing market has been one of the more resilient parts of the U.S. economy post-COVID, but higher foreclosure activity suggests the cracks may be widening.

• For real estate investors, fund managers (including those in commercial property), and stakeholders in distressed assets, rising foreclosure activity is a signal worth monitoring — it may foreshadow broader weakness in household finances and real-estate fundamentals.

• While this isn’t yet a systemic crisis, rising defaults and foreclosures raise risk for lenders, servicers and investors in residential real estate, especially in markets with softer home-price trends.

What to Watch Going Forward

• Whether foreclosure filings continue to rise (or accelerate) in coming months as economic pressures persist.

• Regional markets where home-price declines, high unemployment, or high mortgage-rate burdens coincide — these may be hotspots for real-estate distress.

• Impact on supply: more distressed sales and foreclosed properties entering the market could weigh on prices and rental markets in some areas.

Weitz Take: 

This one pretty much speaks for itself. I would say that a 20% increase is certainly notable, but this is very market to market driven at this point. It will be interesting to see if this makes it way to your area.