Homeowner equity remains historically strong across most of the United States, but recent ATTOM data shows a trend worth watching.
The percentage of “seriously underwater” mortgages, where the outstanding loan balance exceeds the home’s market value by at least 25%, rose to 3.2% nationally during Q1 2026. While that remains well below levels seen during the Great Recession, the increase is a reminder that real estate is always local and market conditions can shift.
The ten states with the highest shares of seriously underwater mortgages are shown in the accompanying infographic.
For real estate professionals, lenders, investors, and homeowners, this is another reason to look beyond national headlines and focus on local market fundamentals. Equity trends, inventory, employment, migration, and affordability all play a role in understanding where your market may be headed next.
What are you seeing in your local market? Are equity levels holding steady, or are you beginning to notice changes?
Robert Foreman
Real Estate Broker | Loan Officer
🌐 LivingInPhoenix.net
📧 robert@livinginphoenix.net