U.S. Homeowners Face Rising 'Seriously Underwater' Mortgages, Minnesota Sees Significant Surge
The share of U.S. homeowners with 'seriously underwater' mortgages has increased to 3.2% in the second quarter, up from 2.7% a year earlier, according to a state-by-state analysis by real estate data firm ATTOM. A mortgage is considered 'seriously underwater' when the combined balance of loans secured against a property is at least 25% greater than its estimated worth. This problem worsened year-over-year in 33 states and Washington, D.C. Minnesota experienced the most dramatic shift, with its rate quadrupling in 12 months to 12.1% of mortgaged homes seriously underwater, making it the state with the highest rate. Louisiana ranked second at 10.3%, though its rate improved from the previous quarter. Iowa, Mississippi, and Arkansas also reported high shares of seriously underwater mortgages. Concurrently, the percentage of 'equity-rich' homes, where the amount owed is no more than half the estimated value, declined for the fourth consecutive quarter to 41.1%, the lowest in nearly five years.
