Underwater mortgages on decline

by MPA08 Dec 2017
In yet another indication of America’s housing strength, homes with negative equity are falling.

“The amount of equity in mortgaged real estate increased by $288 billion in Q3 2017 compared with Q2 2017, and increased by $871 billion between Q3 2016 and Q3 2017 – a year-over-year increase of 12 percent,” CoreLogic said in its latest Equity Report.

The national share of homes with negative equity fell to 4.9% in Q3 2017.

Homeowner equity has increased by $4.5 trillion over the past five years.

The current share of negative equity is 20 percentage points lower today than during the peak of the underwater mortgage crisis, when the share was 26%.

“The improvement in negative equity has been national, with all but two states registering a year-over-year decrease in Q3 2017 (Louisiana and New York saw small increases of 0.1 percentage points and 0.6 percentage points, respectively),” CoreLogic said. “Nevada’s 5.4-percentage-point decrease between Q3 2016 and Q3 2017 represented the nation’s largest year-over-year decline, and the drop from a high of 72.7 percent in Q1 2010 to 9 percent in Q3 2017 represented the largest decline from the peak.”
 

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