U.S. Mortgage Crisis Deepens: More Homes Seriously Underwater

A recent surge in 'seriously underwater' mortgages highlights growing financial instability in the housing market, particularly in Southern states.

The percentage of U.S. homes with mortgages considered 'seriously underwater' increased to 2.7% in Q1 2024, up from 2.6% in the previous quarter.
Kentucky, West Virginia, and Oklahoma reported the highest increases in seriously underwater mortgages, with Kentucky leading at 8.3%.
The proportion of equity-rich homes declined nationally, signaling a drop in financial security for many American homeowners.
Southern states experienced the most significant rise in underwater mortgages, correlating with regional economic challenges.
Experts suggest the spring buying season will be crucial in determining long-term market trends amid these shifts.