state-by-state analysis<\/a> from real estate data firm ATTOM.<\/p>\nThat means the combined balance of loans secured against the property is at least 25% greater than what the home itself is estimated to be worth.<\/p>\n
More US homeowners are falling underwater on their mortgages. motortion \u2013 stock.adobe.com<\/p>\n
Minnesota now has the nation\u2019s highest rate of seriously underwater mortgages. Jacob \u2013 stock.adobe.com<\/p>\n
The problem worsened year-over-year in 33 states and Washington, DC \u2014 but nowhere was the shift as dramatic as Minnesota.<\/p>\n
The North Star State vaulted to the top of the nation\u2019s underwater rankings, with a whopping 12.1% of mortgaged homes seriously underwater in the second quarter.<\/p>\n
That\u2019s up from just 3% in the first quarter and 2.6% a year earlier \u2014 meaning Minnesota\u2019s rate has more than quadrupled in just 12 months.<\/p>\n
Louisiana ranked second, with 10.3% of mortgaged homes seriously underwater. Unlike Minnesota, however, the state\u2019s situation has actually improved: Its rate fell from 11.8% in the previous quarter and 11.9% a year earlier.<\/p>\n
Louisiana remains one of the nation\u2019s hardest-hit states for underwater homeowners. ungvar \u2013 stock.adobe.com<\/p>\n
Nearly 8% of Iowa\u2019s mortgaged homes are worth substantially less than what their owners owe. Felix Mizioznikov \u2013 stock.adobe.com<\/p>\n
Iowa landed in third place at 7.8%, up from 6% in the first quarter and 5.9% a year ago.<\/p>\n
Mississippi and Arkansas rounded out the five states with the highest shares, at 6.4% and 6%, respectively.<\/p>\n
The deterioration comes as another measure of homeowners\u2019 financial cushion is also moving in the wrong direction.<\/p>\n
Just 41.1% of mortgaged US homes were considered \u201cequity rich\u201d during the second quarter \u2014 meaning the amount owed on the property was no more than half its estimated value \u2014 down from 43.3% during the first quarter and 47.4% a year earlier.<\/p>\n
That marked the fourth consecutive quarterly decline and brought the share of equity-rich homes to its lowest level in nearly five years, according to ATTOM.<\/p>\n
Underwater mortgages are on the rise nationwide. Andy Dean \u2013 stock.adobe.com<\/p>\n
\u201cThese two measures of home equity strength, the rates of equity-rich and seriously underwater homes, remain healthier than they were prior to 2020,\u201d ATTOM CEO Rob Barber said in the report.<\/p>\n
\u201cHowever, both have been moving in less favorable directions over the past year, suggesting a trend worth watching.\u201d<\/p>\n
New York homeowners, meanwhile, are largely bucking the troubling national trend.<\/p>\n
Just 1.5% of mortgaged properties in the Empire State were seriously underwater in the second quarter, down from 1.9% during the first quarter and 2% a year earlier.<\/p>\n
New Jersey also fared relatively well, with 1.6% of mortgaged properties seriously underwater, down from 1.8% the previous quarter and 1.7% a year ago.<\/p>\n
Vermont recorded the lowest underwater rate in the country, at just 0.9%.<\/p>\n
New York Post may receive revenue from affiliate and advertising partnerships for sharing this content and\/or when you make a purchase.<\/p>\n","protected":false},"excerpt":{"rendered":"More American homeowners now owe substantially more on their mortgages than what their properties are worth, as a…\n","protected":false},"author":2,"featured_media":847794,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,3055,101,6429,85940,1170,1349],"class_list":["post-847793","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-debt","tag-economy","tag-minnesota","tag-mortgage-meltdown","tag-real-estate","tag-residential-real-estate"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/847793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=847793"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/847793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/847794"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=847793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=847793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=847793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}