Rising Home Values Lift Underwater Homeowners
Thanks to the slowly increasing home prices the past three months, the number of borrowers who owe more than their homes are worth dropped by 700,000, according to a recent report. While this still is just a fraction of homeowners who are finding themselves underwater, it is still a step in the right direction.
The share of underwater homeowners dropped to 23.7%, an improvement from the 25.2% at the end of last year. Decreasing the number of underwater borrowers is an important step in reducing mortgage default risk and we can hope to see this number continuing to diminish.
Currently, there is around $691 billion in mortgage debt in underwater loans, overall, in the United States.