After three consecutive quarters of decline, U.S. foreclosure activity is once again on the rise, signaling renewed financial strain for American homeowners amid persistent economic pressure and elevated mortgage rates. According to a recent report from ATTOM, a leading real estate data analytics company, 35,890 U.S. properties had foreclosure filings in March 2025 alone—marking an 11 percent increase from February and a 9 percent increase from the same period in 2024.
The rise is not an isolated incident but part of a growing trend. Foreclosure filings for the entire first quarter of 2025 totaled 93,953, up 11 percent from the fourth quarter of 2024, indicating the steady financial squeeze being felt across the country. Rob Barber, CEO of ATTOM, acknowledged that while foreclosure activity remains below the long-term average, the growing numbers suggest that more homeowners are beginning to struggle with affordability, particularly as interest rates remain elevated.
One of the key drivers of this upward trend in foreclosures is the persistent elevation in mortgage rates. For the entirety of the first quarter, the average rate for a 30-year fixed mortgage hovered above 6.5 percent. For homeowners with adjustable-rate mortgages or those who refinanced at low rates during the pandemic-era lows, the pressure is building as monthly payments climb higher. Many borrowers, especially those with tight budgets, are now facing unsustainable payment increases, prompting some to fall behind on their loans.
According to market analysts, the high interest rate environment has not only reduced affordability for new buyers but also increased risks for current homeowners who may be dealing with inflation, stagnant wages, or job market instability. While some experts, including Fannie Mae’s chief economist, predict a potential decline in rates to around 6.3 percent later in the year, it remains to be seen whether such a dip will come soon enough to prevent further distress.
Certain regions of the country are experiencing sharper spikes than others. Columbia, South Carolina, led the nation in foreclosure rate for Q1 2025, followed by several cities in Florida and California. Notably, Lakeland, FL, and Bakersfield, Riverside, and Chico, CA made the list of most affected cities, where rising costs of living and property taxes have only added to financial burdens. These local trends offer a sobering glimpse into the fragile state of regional housing markets, many of which are still recovering from earlier economic shocks and pandemic-era imbalances.
In response to the mounting foreclosure pressures, the Trump administration has implemented a series of policy decisions aimed at restoring stability and protecting American homeowners—especially veterans and families in disaster-affected regions.
One of the most impactful steps taken has been the decision by the Department of Veterans Affairs (VA) to end the controversial Veterans Affairs Servicing Purchase (VASP) program, a scheme created under the Biden administration. Critics of VASP argued that the program not only mismanaged federal funds but undermined the long-trusted VA Home Loan program, a flagship benefit for U.S. service members and veterans.
Rep. Mike Bost (R-IL) and Rep. Derrick Van Orden (R-WI) praised the decision to dismantle VASP, calling it a long-overdue correction to a policy that risked veterans’ long-term homeownership. “The VA Home Loan program has been a cornerstone of American military support for generations,” Bost stated. “The Biden-era VASP plan endangered that trust and needed to be reversed. We commend President Trump for acting decisively.”
While Democrats like Rep. Mark Takano (D-CA) voiced opposition to the repeal, claiming it could place veterans in financial jeopardy, Trump administration officials and VA leadership emphasized that the move was essential to preserving the integrity of veteran home financing and redirecting resources toward more effective support systems.
Simultaneously, the Department of Housing and Urban Development (HUD) has issued a temporary moratorium on foreclosures for homeowners in hurricane-impacted areas, offering relief to FHA borrowers in regions battered by Hurricanes Milton and Helene, including Florida, North Carolina, and Virginia. The moratorium, now extended until July 10, allows families time to rebuild without the fear of losing their homes in the midst of recovery.
With the FHA insuring over a million single-family mortgages in these regions, this proactive move by the Trump administration has already prevented thousands of foreclosures. It demonstrates a clear distinction between targeted, need-based relief efforts and the bloated, unfocused programs of the previous administration.
This strategic use of moratoriums—not as blanket bailouts, but as surgical tools to protect families in dire circumstances—highlights the Trump administration’s effort to walk the fine line between fiscal responsibility and compassionate governance.
As the foreclosure situation continues to develop, the administration remains committed to balancing policy interventions with free market principles. While the housing market navigates a difficult landscape, ongoing adjustments to monetary policy, mortgage servicing standards, and disaster response are likely to play a pivotal role in stabilizing homeownership nationwide.
Many industry experts and policymakers are cautiously optimistic. With potential interest rate relief later in the year and stronger safeguards against fraud and mismanagement, there is hope that the upward foreclosure trend will level off—especially if job markets remain relatively stable and inflation continues to cool.
Still, the economic pressures on middle-class families remain significant, and the administration has made it clear that ensuring housing security, particularly for veterans and disaster-impacted communities, is a top priority.
The current foreclosure trend is more than a data point—it’s a reflection of the deeper challenges Americans face in 2025. The housing market, still sensitive from the pandemic years and inflationary pressures, requires leadership rooted in clarity, discipline, and purpose. With President Trump at the helm, the approach is focused on eliminating waste, empowering homeowners, and safeguarding the institutions that support long-term homeownership.
Whether it’s canceling failed Biden-era programs or directing aid where it’s truly needed, the Trump administration is once again proving that America First means putting real Americans—and their homes—at the center of policy.
