Wednesday, November 09, 2011
Half of All Mortgages Now Effectively Under Water
CNBC Real Estate Reporter Diana Olick gives us reality check on todays Realty market.
Negative equity rose to 28.6 percent of single-family homes with mortgages in the third quarter of this year, according to Zillow. That's up from 26.8 percent in the second quarter. In real terms, that's 14.6 million borrowers. As Olick explains it, the biggest drag on the housing market is the growth in "effective" negative equity, which is borrowers who have so little equity in their homes that they cannot afford to move.