Underwater Mortgages (Owing More Than the Home Is Worth)
Share of outstanding first mortgages owing more than the home is estimated to be worth, by quarter
Where the Underwater Mortgages (Owing More Than the Home Is Worth) stands now
The Underwater Mortgages (Owing More Than the Home Is Worth) was 0.3% in the second quarter of 2026. Since 2013 it has ranged from 0.1% in the second quarter of 2022 to 11.3% in the first quarter of 2013.
How the Underwater Mortgages (Owing More Than the Home Is Worth) has moved since 2013
Underwater Mortgages (Owing More Than the Home Is Worth): little changed over the past year
Percent of outstanding first mortgages with estimated loan-to-value above 100 percent, by number of loans, FHFA National Mortgage Database: 0.3% in the second quarter of 2026, the same as a year earlier. Quarterly, 2013–2026.
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The quote: 0.3% of outstanding first mortgages were underwater at the end of the second quarter of 2026, the same as a year earlier. A mortgage is underwater when it owes more than the home is estimated to be worth. The share counts first mortgages only and uses the Federal Housing Finance Agency's estimate of home values. Source: Federal Housing Finance Agency, National Mortgage Database Aggregate Statistics.
What the Underwater Mortgages (Owing More Than the Home Is Worth) measures
Measurement basis: Share of outstanding first mortgages, by number of loans, whose estimated current loan-to-value ratio is above 100 percent, so the balance owed is more than the home's estimated value (negative equity). FHFA publishes it directly in its Outstanding Residential Mortgage Statistics (All Mortgages, national, PCT_MTMLTV_GT100) as of each quarter's end, rounded to a tenth of a percentage point. The home's current value is FHFA's estimate: its value at origination updated with FHFA's house price index for the area. First mortgages only, not second liens or home equity lines. It covers the mortgages in FHFA's National Mortgage Database, a nationally representative 1-in-20 sample of closed-end first mortgages reported to the credit bureaus; mortgages on investor-owned homes and manufactured homes are not as well represented. If FHFA restates a published quarter, we log the new figure for review and keep the published one.
A higher rate is worse for households.
This product uses FHFA data but is neither endorsed nor certified by FHFA.
Underwater Mortgages (Owing More Than the Home Is Worth) by quarter, 2013 to 2026
| Quarter | Rate | Change from a year earlier (percentage points) |
|---|---|---|
| Q2 2026 | 0.3% | 0.0 |
| Q1 2026 | 0.3% | 0.0 |
| Q4 2025 | 0.3% | 0.0 |
| Q3 2025 | 0.3% | +0.1 |
| Q2 2025 | 0.3% | +0.1 |
| Q1 2025 | 0.3% | 0.0 |
| Q4 2024 | 0.3% | 0.0 |
| Q3 2024 | 0.2% | 0.0 |
| Q2 2024 | 0.2% | 0.0 |
| Q1 2024 | 0.3% | -0.1 |
| Q4 2023 | 0.3% | -0.1 |
| Q3 2023 | 0.2% | 0.0 |
| Q2 2023 | 0.2% | +0.1 |
| Q1 2023 | 0.4% | +0.2 |
| Q4 2022 | 0.4% | +0.2 |
| Q3 2022 | 0.2% | 0.0 |
| Q2 2022 | 0.1% | -0.1 |
| Q1 2022 | 0.2% | -0.2 |
| Q4 2021 | 0.2% | -0.2 |
| Q3 2021 | 0.2% | -0.3 |
| Q2 2021 | 0.2% | -0.4 |
| Q1 2021 | 0.4% | -0.1 |
| Q4 2020 | 0.4% | -0.2 |
| Q3 2020 | 0.5% | -0.1 |
| Q2 2020 | 0.6% | 0.0 |
| Q1 2020 | 0.5% | -0.2 |
| Q4 2019 | 0.6% | -0.3 |
| Q3 2019 | 0.6% | -0.2 |
| Q2 2019 | 0.6% | -0.3 |
| Q1 2019 | 0.7% | -0.3 |
| Q4 2018 | 0.9% | -0.2 |
| Q3 2018 | 0.8% | -0.4 |
| Q2 2018 | 0.9% | -0.5 |
| Q1 2018 | 1.0% | -0.7 |
| Q4 2017 | 1.1% | -0.7 |
| Q3 2017 | 1.2% | -0.7 |
| Q2 2017 | 1.4% | -0.8 |
| Q1 2017 | 1.7% | -0.9 |
| Q4 2016 | 1.8% | -1.1 |
| Q3 2016 | 1.9% | -1.2 |
| Q2 2016 | 2.2% | -1.3 |
| Q1 2016 | 2.6% | -1.4 |
| Q4 2015 | 2.9% | -1.7 |
| Q3 2015 | 3.1% | -1.9 |
| Q2 2015 | 3.5% | -2.3 |
| Q1 2015 | 4.0% | -3.0 |
| Q4 2014 | 4.6% | -3.1 |
| Q3 2014 | 5.0% | -3.5 |
| Q2 2014 | 5.8% | -3.9 |
| Q1 2014 | 7.0% | -4.3 |
| Q4 2013 | 7.7% | — |
| Q3 2013 | 8.5% | — |
| Q2 2013 | 9.7% | — |
| Q1 2013 | 11.3% | — |
Quarterly · Federal Housing Finance Agency, National Mortgage Database Aggregate Statistics
Counties with the highest safety net and buffer scores
There's no county figure for this measure, so this list uses the safety net and buffer part of our County Distress Index.
| Rank | County | Score (0–100) |
|---|---|---|
| 1 | Choctaw County, OK | 94.8 |
| 2 | Stewart County, GA | 94.2 |
| 3 | Noxubee County, MS | 94.2 |
| 4 | Hudspeth County, TX | 94 |
| 5 | Brooks County, TX | 94 |
| 6 | Lake County, TN | 94 |
| 7 | Duval County, TX | 93.9 |
| 8 | Ripley County, MO | 93.5 |
| 9 | Dunklin County, MO | 93.3 |
| 10 | Quitman County, GA | 93.2 |
Common questions about the Underwater Mortgages (Owing More Than the Home Is Worth)
What does underwater mean for a mortgage?
The mortgage balance is more than the home is estimated to be worth, so the owner has negative equity. A sale would not pay off the loan.
How can FHFA tell a home is underwater without an appraisal?
FHFA takes the home's value when the loan was made and updates it with its house price index for the area, so each value is an estimate. The estimate can miss for any one home.
Does this count second mortgages or home equity lines?
No. It counts first mortgages only. A home with a second mortgage or a home equity line can owe more than this share shows.
Does this cover every mortgage?
It covers the mortgages in FHFA's National Mortgage Database, a random one-in-20 sample of closed-end first mortgages reported to the credit bureaus. FHFA describes the sample as representative of the mortgage market as a whole. Mortgages on investor-owned homes and manufactured homes are not as well represented.
Where does this data come from?
The Federal Housing Finance Agency's National Mortgage Database Aggregate Statistics, in its Outstanding Residential Mortgage Statistics file, which FHFA publishes once a quarter. We read the file directly, with no manual entry.
Sources and method for the Underwater Mortgages (Owing More Than the Home Is Worth)
- Federal Housing Finance Agency, National Mortgage Database Aggregate Statistics Measurement basis: Share of outstanding first mortgages, by number of loans, whose estimated current loan-to-value ratio is above 100 percent, so the balance owed is more than the home's estimated value (negative equity). FHFA publishes it directly in its Outstanding Residential Mortgage Statistics (All Mortgages, national, PCT_MTMLTV_GT100) as of each quarter's end, rounded to a tenth of a percentage point. The home's current value is FHFA's estimate: its value at origination updated with FHFA's house price index for the area. First mortgages only, not second liens or home equity lines. It covers the mortgages in FHFA's National Mortgage Database, a nationally representative 1-in-20 sample of closed-end first mortgages reported to the credit bureaus; mortgages on investor-owned homes and manufactured homes are not as well represented. If FHFA restates a published quarter, we log the new figure for review and keep the published one. We use the quarterly figures as published, from the first quarter of 2013 through the second quarter of 2026, with no adjustment of our own. Federal Housing Finance Agency doesn’t adjust this rate for the season, so compare a quarter with the same quarter a year earlier. Federal Housing Finance Agency’s report