Nearly half of mortgaged homes in the U.S. are considered equity rich, 3Q data shows.

Data curator ATTOM released its latest 2022 U.S. Home Equity & Underwater Report. The report shows that 48.5% of mortgaged residential properties had loan balances that were no more than 50% of their estimated market values. That’s up from 48.1% in 2Q for the 10th straight quarter.

The report also found that at least half of all mortgage-payers in 20 states were equity-rich in the third quarter. There were only seven states a year earlier.

Nine of the 10 states where equity-rich mortgaged homes increased the most from the prior quarter were in the Midwest, Northeast and South regions of the U.S., according to the report.

The top five were:

  • South Dakota, with the largest increase, up from 36.7% in the second quarter to 41.8% in the third quarter
  • Vermont, up from 71.4% to 75.9%
  • Montana, up from 48.1% to 51.5% 
  • Indiana, up from 43% to 46.2%
  • Mississippi, up from 29.1% to 31.5%

The report also showed that just 2.9% of mortgaged homes, or one in 35, were considered seriously underwater in 3Q. “Underwater” means that a combined estimated balance of loans secured by the property was at least 25% more than the property’s estimated market value.

This number was the same as the prior quarter, but down from 3.4%, or one in 29 properties, in the third quarter of 2021.

NEXT, connecting women in the mortgage industry to grow and advance their leadership and careers.

Stay in the know

Get the daily intel that impacts your customers, employees and market. 

Up NEXT eNewsletter — Industry news

Thank you!

Share This