New foreclosure filings in the U.S. fell from July to September, signaling that widespread distress in the real estate market is largely retreating. According to a new report from Attom, the number of properties with foreclosure filings decreased compared to the previous quarter and dropped by double digits year-over-year.

Attom reported that 62,380 properties entered the foreclosure process in the third quarter, reflecting a 10% decrease compared to last year, while bank repossessions fell by 12% over the same period.

"Moving forward, we anticipate foreclosure levels will stay relatively low, though localized increases may occur in areas grappling with affordability or other market pressures," said Rob Barber, CEO of Attom. "While we're seeing a decline in foreclosure starts and repossessions, it's crucial to remain vigilant, as any economic disruptions or interest rate changes could shift the current trend."