Mortgages with Negative Equity Continue to Decline for Fifth Consecutive Quarter

Nationwide, the number of mortgages with negative equity continued to decline for the fifth consecutive quarter according to Zillow’s recent Negative Equity Report. The Q2 data showed that 23.8% of all homeowners with a mortgage were still underwater, representing over 12 million homeowners. Nevertheless, the number of underwater mortgages was down from 25.4% in Q1 2013 and down from 30.9% in Q2 2012. Zillow pointed out in their report that while unusually high numbers of underwater mortgages will remain into the foreseeable future, the high rates of appreciation have helped to quickly reduce the number of homes that are in a negative equity status and Zillow anticipates home value appreciation to moderate later this year.

Zillow’s report includes an interactive graph comparing the Q2 2012 and Q2 2013 loan to value distribution of homeowners with a mortgage. The Idaho cities included in the metros analyzed by Zillow for this quarter’s report were Blackfoot, Boise, Burley, Coeur d’Alene, Idaho Falls, Lewiston, Moscow, Mountain Home, Pocatello, Rexburg, and Twin Falls. Also included were Jackson, WY and Kalispell, MT. To use their interactive graph, and to read the full report, go to http://bit.ly/1ejqsM6.

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