In Connecticut, foreclosures rose by 136.7%, from 836 in the first six months of 2021 to 1,979 in the first half of 2022. The foreclosure rate in the state of one in every 773 homes ranks as the 11th highest in the nation.
According to five-year estimates from the U.S. Census Bureau’s 2020 American Community Survey, 67.4% of homeowners in Connecticut are paying down a mortgage, the 10th largest share among states.
Even though experts agree there’s no chance of a large-scale foreclosure crisis, there are a number of homeowners who may be coming face-to-face with foreclosure as a possibility. And while the overall percentage of homeowners at risk is decreasing with time, that’s little comfort to those individuals who are facing challenges today.
Despite mortgage interest rates blasting through the 6% threshold for the first time in roughly 14 years, and fears of a recession continuing to make headlines, home prices show no signs of dramatically cooling off. For instance, the July 2022 median U.S. home price of $403,800 was nearly 11% higher than the $364,600 median U.S. home price in July 2021. At the same time, the housing supply remains at a deficit, which experts expect to continue for the foreseeable future due to a combination of factors, such as a shortage of construction labor, zoning restrictions, and raw material costs.
The overall rate of foreclosure filings increased by close to 14% between July and August. This uptick follows the dip in foreclosure activity between June and July, which experts believed was likely related to a typical Q3 seasonal drop.