The number of American homeowners falling into negative equity increased in the first quarter of the year, driven by soaring living costs and a volatile property market, according to a new report.
ATTOM data shows that mortgages considered 'seriously underwater'—where the loan-to-value ratio is 125% or higher—rose from 2.6% to 2.7% of all residential mortgages. This means homeowners owe at least 25% more than their property's estimated value.
Kentucky saw the sharpest increase, with the share of underwater mortgages rising from 2% to 8.3% in the first three months of the year. Louisiana, where house prices have fallen 2.8% year-on-year, has the highest proportion of troubled loans, with 11.3% of mortgages now seriously underwater.
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