Nearly a quarter of U.S. mortgage holders are underwater, meaning they owe more money than their house is worth, according to a report by Zillow.
In the third quarter of 2010, the percentage of those underwater rose to 23.2%, up from 21.7% a year ago. This means that nearly 13.9 million homes now have negative equity. Some say it could be another eight to 10 months before those numbers decline. And some experts think the worst is yet to come.
One-quarter of homes [with mortgages] with negative equity is a huge number, but I don’t believe this will hit bottom until June or July,” says Cameron Findlay, chief economist at LendingTree.com.
Advertisement
Related Stories
Single-Family Homes
What Does It Cost to Build a Single-Family Home?
A closer look at the itemized costs in each stage of construction for a single-family home
Builders
A Look at the Boom in Home Builder Stocks During 2023
In 2023, stocks for the 10 biggest U.S. home builders outperformed the S&P 500. What does that say about the housing market?
Financials
Housing Demand Could Rebound in 2024 as Mortgage Rates Ease
The Mortgage Bankers Association predicts lower mortgage rates could bring homebuyers back into the market in 2024