Rising Prices Could Lift 3.5M Homeowners
Out of Negative Equity
While almost one-quarter of homeowners remain underwater, rising home prices over the past year have some economists hopeful negative equity could begin to diminish in coming months.
“The negative equity problem is still crippling many homeowners and the wider economy,” Capital Economics stated in a report.
In addition to the almost one-fourth of homeowners who owe more on their mortgage loans than their homes are worth, almost half of homeowners do not meet the 80 percent loan-to-value ratio required for a standard refinancing.
While “[a]dmittedly, the recovery is still in its infancy,” Capital Economics sees the potential for 3.5 million homeowners to move out of negative equity positions over the next 12 months. Read more ....
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