Foreclosure activity increased across the United States in June compared with a year ago, though filings remain well below levels seen before the COVID-19 pandemic. The latest data suggest that higher housing costs continue to strain some homeowners, while strong equity positions and tighter lending standards continue to prevent a broader wave of defaults.
According to ATTOM, lenders initiated foreclosure filings on 39,327 U.S. properties in June. That represents a 3% decline from May but a 21% increase from June 2025. Nationwide, one in every 3,656 housing units had a foreclosure filing during the month.
California Foreclosure Filings Rise From Year Ago
California recorded one foreclosure filing for every 3,205 housing units in June, giving the state the ninth-highest foreclosure rate in the nation. Florida posted the highest rate, with one filing for every 2,106 housing units, while Vermont recorded the lowest rate at one filing for every 24,217 homes.
Within California, Lake, Shasta, Sutter, and Mendocino counties reported the highest foreclosure rates during the month. None of those counties are located in the San Gabriel Valley, though the statewide increase serves as a reminder that affordability pressures continue to affect many California homeowners.
Housing costs have climbed over the past several years as mortgage rates, insurance premiums, property taxes, and maintenance expenses remain elevated. Those factors have made it more difficult for some homeowners to keep up with monthly payments, particularly households that purchased homes during periods of higher borrowing costs.
Strong Equity Continues To Limit Defaults
Despite the year-over-year increase, foreclosure activity remains well below historical averages. Housing analysts point to significant homeowner equity and more disciplined mortgage underwriting as key reasons foreclosure volumes have not returned to levels seen during the housing crisis more than a decade ago.
Many homeowners who experience financial hardship today still have substantial equity in their properties. That often allows them to sell their homes before foreclosure becomes necessary, limiting distressed sales that can place downward pressure on neighborhood property values.
For communities throughout the San Gabriel Valley, including El Monte, South El Monte, Baldwin Park, Rosemead, Arcadia, Temple City, and Irwindale, the latest figures suggest the local housing market remains fundamentally stable despite rising financial pressures. While some households continue to face affordability challenges, the broader market has not experienced the widespread defaults that characterized the Great Recession.
Housing economists will continue monitoring foreclosure activity alongside mortgage rates, employment trends, and home prices as indicators of market health during the second half of the year. Readers can review national foreclosure statistics through ATTOM Data Solutions and follow California housing research and market trends at the California Association of Realtors Research & Economics Center. The June report suggests financial pressures are increasing for some homeowners, but strong equity and sound lending practices continue to support California’s housing market.
