Overview
- Equity-rich homes — those with at least 50% equity — fell to 46.1% of mortgaged properties, down from 47.4% in Q2 and 48.3% a year earlier.
- The share of seriously underwater mortgages rose to 2.8%, up from 2.7% in Q2 and 2.5% a year ago, defined as loan balances at least 25% above market value.
- Underwater rates increased in 35 states quarter over quarter and in 46 year over year, with Washington, D.C., posting the largest annual jump to 5.1%.
- Louisiana had the highest concentration of seriously underwater loans at 11.2%, followed by Mississippi at 6.6% and Kentucky at 6%, while Vermont, Rhode Island and New Hampshire were near or below 1%.
- Home-price data from the FHFA showed a 0.1% monthly dip in July and 2.3% annual growth, and lenders are monitoring pockets of borrower stress even as underwater shares remain far below the 19% seen in 2013.