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The share of mortgages that are underwater inches up to 1.6%—still far below the 23% seen in 2009

Back in April 2025, 1.0% of U.S. mortgages were underwater, according to ICE Mortgage Technology. As of October 2025, that share has risen to 1.6%.

Author

Lance Lambert
November 21, 2025

Having negative equity means a homeowner owes more on their mortgage than the home’s current market value. This is commonly referred to as being “underwater.” Back in April 2025, just 1.0% of U.S. mortgages were underwater, according to ICE Mortgage Technology. As of October 2025, that share has risen to 1.6%.

That “underwater” uptick is primarily concentrated in three areas:

  1. VA and FHA loans, which typically involve lower down payments.

  2. Recent vintages—specifically loans originated in 2023, 2024, and 2025.

  3. Housing markets in the Southwest, Southeast, and West, where home prices have seen more notable declines since the Pandemic Housing Boom fizzled out in 2022.

It’s also worth noting that while the underwater share has ticked up, it remains far below the levels seen during the Global Financial Crisis. In September 2009, a staggering 23.0% of outstanding homeowner mortgages had negative equity, according to CoreLogic/First American.