While homeowner equity is at its highest level since 2007, 6 million homeowners are still underwater on their mortgages.
Mortgage bankers fear another real estate bubble, according to the latest quarterly survey of North American bank risk managers conducted for FICO, a predictive analytics software company. In the survey, 56 percent of respondents directly involved in mortgage lending said that an unsustainable real estate bubble is inflating. Six million homeowners in the U.S. are still underwater on their mortgages, with the average negative equity at 33 percent. Yet with home prices soaring in many cities, total homeowner equity is at its highest level since late 2007.