Foreclosure filings climbed again in October, after sitting at historic lows in recent years, according to new data released Thursday.

While the numbers are still small, the persistent rise in foreclosures may be a sign of cracks in the housing market.

There were 36,766 U.S. properties with some type of foreclosure filing in October — such as default notices, scheduled auctions or bank repossessions, according to Attom, a property data and analytics firm. That was 3% higher than September and a 19% jump from October 2024, and marked the eighth straight month of annual increases, Attom said.

Foreclosure starts, which are the initial phase of the process, rose 6% for the month and were 20% higher than the year before. Completed foreclosures, the final phase, jumped 32% year over year.

“Even with these increases, activity remains well below historic highs. The current trend appears to reflect a gradual normalization in foreclosure volumes as market conditions adjust and some homeowners continue to navigate higher housing and borrowing costs,” said Attom CEO Rob Barber in a release.

Florida, South Carolina and Illinois led the nation in state foreclosure filings. On a metropolitan area level, Florida’s Tampa, Jacksonville and Orlando had the most filings, with Riverside, California, and Cleveland rounding out the top five.

Looking specifically at completed foreclosures, Texas, California and Florida had the most, suggesting those states will see more inventory coming on the market at distressed prices. There is still very strong demand for homes, especially in lower price ranges, so it is likely those foreclosed properties will find buyers quickly.

At the peak of the Great Recession, more than 4% of mortgages were in foreclosure, according to Rick Sharga, CEO of CJ Patrick Co., a real estate market intelligence firm. Today, less than 0.5% are in foreclosure, well below the historic average of between 1% and 1.5%. In addition, 4% of mortgages are delinquent; at the peak of the financial crisis, almost 12% were.

“So, no foreclosure tsunami to worry about,” said Sharga. “That said, there are a few areas of concern. (Federal Housing Administration) delinquencies are over 11%, and account for 52% of all seriously delinquent loans; we’re likely to see more FHA loans in foreclosure in 2026.”

He also noted that states where home prices have been falling while insurance premiums have been soaring — Florida and Texas, in particular — are seeing an uptick in defaults.

While home prices nationally are easing, they remain stubbornly high. Meanwhile, mortgage rates, which were expected to fall more sharply after the Federal Reserve started to cut rates, are still within a percentage point of their recent highs. Some recent buyers who thought they might have been able to refinance to lower rates by now may be feeling pressure, especially with still stubborn inflation.

Consumer debt is at an all-time high, delinquencies are rising in other types of consumer credit and the job market appears to be weakening — all of which could contribute to cracks in the housing market.

“None of these issues have impacted mortgage performance – yet, but it would be unrealistic to assume that these trends, along with slow home sales and declining home price appreciation, won’t lead to at least a slight increase in delinquencies and defaults in the months ahead,” added Sharga.