Washington, D.C.--Foreclosure activity across the United States declined last month to the lowest level since July 2006, as banks reclaimed fewer homes, according to a report released on Thursday.

RealtyTrac, which tracks housing market data, reported foreclosure filings for 106,866 properties across the country, an 8.6 percent decrease from August and a 18.6 percent drop from a year earlier.

September was the 48th consecutive month of year-on-year declines in overall foreclosure activity, which includes foreclosure notices, scheduled auctions and bank repossessions.

"September foreclosure activity was back to pre-housing bubble levels nationwide, in large part thanks to a continued slide in bank repossessions," said Daren Blomquist, vice president at RealtyTrac.

Lenders repossessed 22,930 homes in September, a 13 percent decline from the month before, while 48,399 properties were set for foreclosure auctions, a 5.5 percent decrease.

Default notices dropped 9.8 percent to 8,840.