The State of Underwater Mortgages in 2024

As we enter 2024, the landscape of underwater mortgages reveals concerning trends, particularly in Southern states. Underwater mortgages are defined as those where homeowners owe at least 25% more than their property’s current market value. As of the first quarter, Kentucky leads the way with 8.3% of homes underwater, followed closely by West Virginia at 5.4% and Oklahoma at 6.1%. Notably, Baton Rouge, Louisiana, has an alarming 13.4% of homes classified as underwater.

### A Closer Look at Underwater Mortgages by Percentage:

1. Kentucky: 8.3%

2. West Virginia: 5.4%

3. Oklahoma: 6.1%

4. Arkansas: 5.7%

5. Mississippi: Data not specified but significant.

6. Louisiana: 13.4% in Baton Rouge.

7. Alabama: Not disclosed.

8. South Dakota: Notable increases observed.

9. Tennessee: Rising numbers reported.

10. Idaho: Impacted by market pressures.

### The Bigger Picture

Nationally, about 2.7% of homes were underwater, marking a slight increase from previous quarters. This trend reflects ongoing challenges in the housing market, largely attributed to rising interest rates that affect home values. 

### States with the Most Underwater Mortgages by Count:

1. Texas: 109,254

2. Illinois: 102,825

3. Ohio: 91,125

4. Pennsylvania: 88,811

5. California: 85,412

6. Louisiana: 67,840

7. Florida: 61,830

8. Georgia: 49,149

9. Michigan: 47,045

10. Missouri: 46,556

The persistence of underwater mortgages highlights the importance of monitoring market conditions and understanding regional disparities. Homeowners and real estate professionals should remain vigilant in navigating these challenges as the economy evolves.

For more insights and detailed statistics, check out the full reports from [Jacobs Associates](https://jacobs-associates.com/articles/2024/07/31/attoms-q2-2024-home-equity-and-underwater-report/ ) and [The Mortgage Point](https://themortgagepoint.com/2024/10/02/homeowners-witnessing-a-reversal-in-home-equity-trends/ ).