The nationwide share of mortgaged residences considered equity rich rose to 47.4% during the second quarter, up from 46.2% in the first quarter.
A new data report from ATTOM determined the second quarter results reversed a trend where the share of equity-rich homes had declined for three straight quarters following its 49.2% peak in the second quarter of 2024. Quarter-over-quarter, the share of equity-rich homes rose in 37 states and the District of Columbia but only 19 states had higher year-over-year equity rich rates.
ATTOM also noted that 2.7% of mortgaged residences were seriously underwater in the second quarter, down slightly from 2.8% in the first quarter but up from 2.4% in the second quarter of 2024.
“With home prices at record highs you’d expect to see owners enjoying more equity in their homes so it’s good to see equity-rich rates rebound after a few slower quarters,” said Rob Barber, CEO of ATTOM. “Unfortunately, the increase in equity-rich rates we saw in the second quarter hasn’t been spread evenly throughout the country,” he added. “In some states, particularly Louisiana, too many homeowners are still struggling with loan balances that are more than their homes are worth.”
