The unprecedented amount of monetary easing from the Federal Reserve has acted like a life preserver to the real estate market, but many Americans still find themselves underwater or anchored to their current homes.
In the second quarter of 2013, the national negative equity rate declined to 23.8 percent of all homeowners with a mortgage, according to Zillow’s Negative Equity Report. In comparison, 25.4 percent of homeowners with a mortgage were underwater in the previous quarter. Almost 31 percent were underwater a year earlier.
The national negative equity rate has now declined for five consecutive quarters, and is below 25 percent for the first time since Zillow began using its current methodology in early 2011. In fact, more than 805,000 American homeowners were freed from negative equity during the second quarter. While this is a significant improvement, many people are still trapped in their homes.