National Negative Equity Share Continues to Decline

Lender Processing Services’ (LPS) Mortgage Monitor report for May indicated that, in the first quarter of 2013, “the total share of mortgages with LTVs [loan-to-values] of greater than 100 percent had declined to just 7.3 million loans” from 17 million loans in 2011. The new total share of negative equity mortgages represents 14.70% of all currently active loans and is 47% lower than the same time last year. The significant decline in the number of underwater mortgages is attributed to rises in home prices across the country. The LPS Home Price Index showed an 8% increase in home prices this past April.

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