Fresno Bee Newsroom Blog

Real Estate: Fewer homeowners underwater on their mortgages

Rising home prices continue to pull Fresno homeowners out from their underwater mortgages, but the pace of improvement could soon slow down, according to a second quarter negative equity report released Tuesday.

In Fresno, 42,455 borrowers, representing 28.4% of all mortgage loans, owed more than the value of their home during the second quarter of the year, according to CoreLogic, a real estate tracking firm in Santa Ana.

In the first quarter, 53,637 borrowers, or 35.7% of all mortgages, had negative equity or were underwater.

The increase in home prices and values continue to help rebuild equity nationwide the first half of 2013, Corelogic officials said.

“But the pace of improvement will likely slow as price appreciation moderates in the second half,” said chief economist Mark Fleming.

Responses

Sara Jones says:

As the property prices are increasing, a large number of properties have come out of their underwater status. This is a good news for the real estate market and also for the homeowners. Most of the homeowners will be able to build up equity in their property easily. Thus, in future, it will be easier for them to qualify for a second mortgage or refinance their properties. However, even after saying this, it should be noted that still there are around 7.1 million US homes which are underwater. So, the price rise is slow and it will still take quite some time to make sure that all the properties come out of their underwater status.

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