Nearly 40% of mortgaged residential properties in the U.S. were considered equity-rich in the third quarter, according to ATTOM’s third-quarter 2021 U.S. Home Equity and Underwater Report. The combined estimated number of loan balances secured by those properties was less than 50% of their estimated market value.
The 39.5% figure for the third quarter was up from 34.4% in the second quarter of 2021 and from 28.3% in the third quarter of 2020.
Only 3.4% of mortgaged homes were considered seriously underwater in the third quarter, down from 4.1% in the prior quarter and 6% a year ago.
Market prices have continued rising over the past year amid low mortgage rates and a desire for homeowners to have more space for schooling or working from home during the pandemic.