Housing debt still traps 10 million Americans

The Washington Post reports:

Nearly 10 million Americans remain financially trapped by homes worth less than their mortgage debts — an enduring drag on the U.S. economy almost seven years after the housing bust triggered the Great Recession.


During the first three months of this year, 18.8 percent of homeowners with a mortgage — 9.7 million — owed more on their loans than their properties would sell for, according to online real estate database Zillow. Though that was an improvement from the 25.4 percent figure of a year ago, the share of such “underwater” homeowners is about four times the historic average.

An additional 18.1 percent of mortgage holders were “effectively” underwater: They had equity, but the proceeds from selling their home would be too low to recoup the sales costs and also put a down payment on a new property.

Thank you Federal Reserve, Fannie, Freddie, and HUD: you promote debt and misery.