Having peaked in 2009 at 26%, the number of U.S. homeowners with a mortgage that are underwater with their mortgage was 2% in Q2, 2023. In addition, CoreLogic is reporting that as home prices have risen, 6.3% fewer owners (about 75k borrowers) were underwater in Q2 compared with the previous quarter. Interestingly, state in the Northeast posted the nation’s largest annual equity gains while those in the West continued to see losses.
“…while more borrowers are underwater compared with one year ago,” Hepp continued, “they are not necessarily concentrated in markets that have seen the largest price declines, as negative equity also depends on the down payment. Natural disasters and related risks also play a substantial role in home equity changes.” Said Selma Hepp, chief economist for CoreLogic