How Low Rates and Rising Prices Led to Negative Equity in a Few States

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Posted To: MND NewsWire

While homeowner equity increased overall during the fourth quarter of 2018, the number of homeowners with negative equity rose for the first time in 12 quarters. Homeowners who were underwater, owing more on their mortgage than the value of their home, rose by 35,000 although it declined year-over-year by 350,000 or 14 percent. The fourth quarter increase raised negative equity by 1.6 percent from the previous quarter to 2.2 million homes. Those homes represent 4.2 percent of mortgaged properties. That too was an annual decline from a national negative rate of 4.9 percent one year earlier. Despite that blip, homeowners with a mortgage, accounting for roughly 63 percent of total residential properties, saw their equity increase by 8.1 percent or $678.3 billion since the fourth quarter of 2017…(read more)

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