Home Equity Rates Continue To Decline In First Quarter 

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ATTOM has released its first quarter 2026 U.S. Home Equity & Underwater Report, which shows that 43.3 percent of mortgaged residential properties in the country were equity-rich, meaning the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value.

That was down from 44.6 percent in the previous quarter and marked the lowest rate of equity-rich residential properties since the fourth quarter of 2021.

Nationwide, 3.2 percent of mortgaged residential properties were considered seriously underwater in the first quarter of 2026, meaning the combined estimated balances of loans secured by the properties were at least 25 percent more than the properties’ estimated market value. That was up from 3 percent in the previous quarter and 2.8 percent in the first quarter of 2025.

“Homeowner equity remains relatively strong overall, but we’re seeing signs of moderation. As mortgage rates have risen and home prices have cooled, the share of equity-rich homes has declined in most markets while the rate of seriously underwater properties is edging up across much of the country.”

Share of equity-rich homes down in majority of states 

The share of equity-rich homes rose in just three states compared to the fourth quarter of 2025 and in six states compared to the first quarter of 2025.

The states that saw year-over-year increases in their shares of equity-rich homes were Illinois (up from 31.5 percent to 33.5 percent), Alaska (up from 31.7 percent to 33.5 percent), South Dakota (up from 51.3 percent to 52.4 percent, North Dakota (up from 31.9 percent to 32.8 percent), New York (up from 54.1 percent to 54.4 percent), and Wisconsin (up from 49.3 percent to 49.5 percent).

The states with the larges year-over-year drops in their shares of equity-rich homes were Florida (down from 49.3 percent to 43.2 percent), Arizona (down from 49.8 percent  to 44.2 percent), Colorado (down from 45.8 percent  to 40.5 percent), North Carolina (down from 47.2 percent to 42.1 percent), and Texas (down from 47.4 percent to 42.5 percent).

The states with the highest shares of equity rich homes in the first quarter of 2026 were Vermont (85.7 percent), New Hampshire (58.1 percent), Montana (57.7 percent), Rhode Island (57.2 percent), and Hawaii (55.8 percent).

Seriously underwater rates up across most of the country 

The share of seriously underwater mortgaged residential properties rose quarter-over-quarter in 44 states and the District of Columbia and rose year-over-year in 45 states and the District of Columbia.

The markets with the largest annual increases in their shares of seriously underwater properties were the District of Columbia (up from 3.8 percent to 5.3 percent), Mississippi (up from 6.6 percent to 8 percent), Louisiana (up from 10.5 percent to 11.8 percent), Kentucky (up from 7.3 percent to 8.5 percent), and Oklahoma (up from 5.5 percent to 6.6 percent).

The states that saw their share of seriously underwater properties shrink year-over-year were North Dakota (down from 4.8 percent to 4.3 percent), South Dakota (down from 3.4 percent to 3 percent), South Carolina (down from 3.8 percent to 3.6 percent), and Wyoming (down from 2.5 percent to 2.4 percent).

The states with the highest shares of seriously underwater properties were Louisiana (11.8 percent), Kentucky (8.5 percent), Mississippi (8 percent), Oklahoma (6.6 percent), and Arkansas (6.4 percent).