American homeowners falling into negative equity rose in the first quarter of the year as soaring living costs and a volatile property market strain households.
The number of mortgages considered ‘seriously underwater’ rose from 2.6 percent to 2.7 percent of all residential mortgages, a new report shows.
In Kentucky, the percentage of ‘seriously underwater’ mortgage holders rose to 8.3 percent in the first three months of the year – the highest of any US state. To hit the threshold, owners must owe at least 25 percent more than the estimated value of their home.
Louisiana, where house prices have fallen 2.8 percent in a year, has the largest share of troubled mortgage holders. Some 11.3 percent of home loans in the Pelican state are now seriously underwater, according to the latest data from ATTOM.
Wyoming followed with 8.8 percent of its mortgage holders hitting the threshold.