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New figures from Zillow this morning (May 24) indicate that in the U.S. in the first quarter, 31.4% of American homeowners are underwater (owing more on their mortgage than the home is worth), up from 31.1% in the fourth quarter of last year. The 16 million underwater homeowners collectively owe $1.2 trillion more than their home is worth, but 90% continue to make mortgage payments on time. A full 35.6% of San Diego metro area homeowners are underwater, up from 35.2% in the fourth quarter of last year, says Zillow.

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Comments

Visduh May 24, 2012 @ 10:10 a.m.

This is not what one would intuitively expect. Recently purchased homes should not be underwater because the lenders are no longer making insane loans. It is the pre-housing-crisis loans that are in this fix. If there is more time to pay down the loans and if some of them have been adjusted or foreclosed, there can be only one reason for this increase, and that is a continuing decline in housing prices. The fact that 90% of the borrowers are still paying loans on underwater homes is heartening.

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Don Bauder May 24, 2012 @ 12:59 p.m.

And this just happened to be announced on a day when mortgage rates hit an all-time low. Yes, lower prices would seem to be a factor. Best, Don Bauder

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SurfPuppy619 May 24, 2012 @ 10:30 a.m.

In 2007 I said we would be in this mess for 3-5 years, in 2010 I revised that to 5-10 years, and at this rate we could go more than a decade before all the underwater loans are cleared out-and that is because there has been no job creation, and it just doesn't look like the job situation will improve in the next 5 years.

We have idiots on both sides running this country into the ground.

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Don Bauder May 24, 2012 @ 1:03 p.m.

Corporate profits are at very high levels for a couple of reasons: companies can borrow for extremely low interest rates, but most importantly, they have learned to get along with a minimal number of employees. Nagging unemployment will be with us indefinitely. And that will retard any housing recovery. Best, Don Bauder

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nan shartel May 25, 2012 @ 7:55 a.m.

Happy Memorial Day Don... Visduh, Puppy, Twister and all u other Bauderites!!!

None

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Don Bauder May 25, 2012 @ 8:43 a.m.

And how about a happy birthday to Bauder? Turns 76 on May 28. Best, Don Bauder

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nan shartel May 25, 2012 @ 11:43 a.m.

it aint the 28th yet Bauder. where do i send the chocolates...i know u don't drink

with the new photo option here u will get a walloping great card!!!

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Don Bauder May 25, 2012 @ 12:36 p.m.

I do love chocolate but can't accept gifts for ethical reasons. So just have a piece of chocolate on me. Thanks for the thought. Best, Don Bauder

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