The Media Noise vs. the Real Housing Story
The media is back at it again.
ATTOM Data Solutions recently released an article with the headline, “U.S. Foreclosure Activity Increases in 2025.”That headline was quickly echoed by other outlets, including HousingWire, which added fuel to the fire with, “U.S. foreclosure filings rise 14% in 2025 as FHA borrowers face greater risk.”
At face value, headlines like these sound alarming. They’re designed to grab attention—and unfortunately, they can cause potential buyers to hesitate, thinking the housing market is on the brink of trouble or that a “better deal” is just around the corner.
But when you look past the headline and into the actual data, a very different story emerges.
Yes, foreclosure activity rose 14% in 2025 compared to 2024—but that increase came off extremely low levels. Foreclosures still represent just 0.26% of all properties, up marginally from 0.23% in 2024. In real terms, that’s roughly 367,000 properties nationwide, which remains historically low.
In fact, the only years with lower foreclosure activity were 2020 and 2021, when foreclosure moratoriums were in place and foreclosures were largely prohibited.
To put this in proper context, during the housing crisis in 2009 and 2010, roughly 2.23% of all properties were in foreclosure. Today’s levels are about one-tenth of that.
The Bottom Line: Foreclosure activity remains near some of the lowest levels on record. Housing is not cracking—it’s healthy. Buyers waiting for home values to meaningfully decline may be waiting a very long time. With rates stabilizing and likely moving lower, we expect activity—and home values—to pick up, not fall.
Atlanta Fed Wage Tracker: A Cooling Signal
The Atlanta Fed’s Wage Tracker showed wage growth slowing on a year-over-year basis, easing from 4.0% in November to 3.7% in December.
Breaking it down:
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Job stayers saw wage growth slow from 3.7% to 3.5%
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Job switchers saw wage gains decline from 4.5% to 4.0%
This signals a cooling labor market. Fewer workers are being poached by competitors, and wage pressures are easing. That’s important, because slower wage growth typically leads to more restrained consumer spending—one of the key ingredients for moderating inflation.
When combined with the continued housing deflation we expect to see this year, these trends point toward lower inflation ahead.
Lower inflation puts downward pressure on rates and increases the likelihood that the Fed will have room to cut further later this year.