Percentage of US mortgages considered 'seriously underwater' rises
The Mott Capital Management founder and CEO weighs in on home price expectations and gives his market outlook.
A new report finds that the percentage of U.S. mortgages considered to be «seriously underwater» rose in the first quarter of 2024, while the proportion of «equity-rich» mortgages fell for the third consecutive quarter.
The report by property and real estate data firm ATTOM found that the portion of mortgaged homes that were seriously underwater rose slightly in the first quarter of 2024 from 2.6% to 2.7% of all residential mortgages. It defines «seriously underwater» as mortgages with a loan-to-value ratio of 125% or more, meaning property owners owe at least 25% more than the estimated market value of the property.
The trend of seriously underwater mortgages increasing prevailed in 37 states during the first quarter, with the largest increases relative to the fourth quarter of 2023 coming in Kentucky, up from two percentage points to 8.3%; West Virginia, up one point to 5.4%; Oklahoma, up from 5.5% to 6.1%; Arkansas, up half a point to 5.7%; and Delaware, up from 2.3% to 2.7%.
There were also notable decreases in the percentage of seriously underwater mortgages in several states from Q4 2023 to Q1 2024, including Missouri, down from 5.6% to 4.5%; Mississippi, down from 8% to 7.1%; Arizona, down from 1.9% to 1.6%; and Hawaii, down from 1.7% to 1.6%.
RENTERS FEAR THEY'LL NEVER OWN A HOME: FED SURVEY
The share of «seriously underwater» mortgages rose in the first quarter in 37 states. (Frederic J. Brown / AFP / File / Getty Images)
States with the largest shares of seriously underwater mortgages were Louisiana (11.3%) and Wyoming (8.8%), followed by Kentucky, Mississippi and Oklahoma. The states with the
Read more on foxbusiness.com
