Enter multiple symbols separated by commas

Real Estate & Mortgages: Why Care About Negative Equity?

Just because you owe more on your mortgage than your home is worth doesn't necessarily mean that you are no longer able to afford your mortgage. For many Americans who bought their homes during the housing boom, little has changed for them financially other than what the appraiser has determined on paper.

What has changed are attitudes, and attitudes can be dangerous.


22.5 percent of U.S. borrowers were in a negative equity positionon their homes at the end of Q3, according to a new report from CoreLogic .

That is actually an improvement from Q2, but only because many severely underwater homes went into foreclosure in the quarter, thereby taking them out of the pool.

The authors of the study warn that deteriorating home prices now will likely push the percentage back up in Q4. ยป Read More

Wall Street

  • Robert Shiller

    Nobel Prize-winning economist Robert Shiller says that his key valuation indicator is flashing warning signs.

  • Lael Brainard

    The Fed is in the early stages of an analysis on changes in bond market liquidity, amid signs that liquidity may be less resilient than in past.

  • Bill Gross

    Janus Capital acquired a majority interest in Kapstream Capital and said Kapstream's Palghat will support Bill Gross as co-portfolio manager of the Janus Global Unconstrained Bond strategy.