In an encouraging sign for the U.S. economy, a new report shows that fewer homeowners across the country are underwater with their mortgages.
In December, 9.3 million U.S. homes were underwater, meaning their value was at least 25 percent less than the mortgages and loans on the property. That figure represents 19 percent of all mortgage properties at the time of the report, published by RealtyTrac, a housing data source.
In September, the number of underwater homes was 10.7 million, and in January the figure was 10.9 million, showing a steady decrease in homes in financial distress.
"During the housing downturn we saw a downward spiral of falling home prices resulting in rising negative equity, which in turn put millions of homeowners at higher risk for foreclosure when they encountered a trigger event such as job loss," said Daren Blomquist, vice president at RealtyTrac.
"Now we are seeing the reverse trend: rising home prices resulting in falling negative equity, which in turn is giving millions of homeowners a lifeline to avoid foreclosure when they encounter a trigger event."
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In an encouraging sign for the U.S. economy, a new report shows that fewer homeowners across the country are underwater with their mortgages.
In December, 9.3 million U.S. homes were underwater, meaning their value was at least 25 percent less than the mortgages and loans on the property. That figure represents 19 percent of all mortgage properties at the time of the report, published by RealtyTrac, a housing data source.
In September, the number of underwater homes was 10.7 million, and in January the figure was 10.9 million, showing a steady decrease in homes in financial distress.
"During the housing downturn we saw a downward spiral of falling home prices resulting in rising negative equity, which in turn put millions of homeowners at higher risk for foreclosure when they encountered a trigger event such as job loss," said Daren Blomquist, vice president at RealtyTrac.
"Now we are seeing the reverse trend: rising home prices resulting in falling negative equity, which in turn is giving millions of homeowners a lifeline to avoid foreclosure when they encounter a trigger event."
obarrow