Industry Update
June 20, 2025

Source: ATTOM

ATTOM’s latest data on the proportion of seriously underwater mortgages for the first quarter 2025 show that the percentage of seriously underwater homes nationwide remained relatively steady nationally and increased from 2.5% in the fourth quarter of 2024 to 2.8% in the first quarter of 2025. Although a 0.4% increase, the finding compares favorably to the 6.6% rate that was reported in the first quarter of 2020.

This article reports on the latest trends in the percentage of properties seriously underwater by state. The term “seriously underwater” refers to properties where the loan balance exceeds the market value by at least 25%.

Seriously Underwater Mortgages by State

1. Louisiana

Louisiana remains the state with the highest percentage of seriously underwater mortgages, though the% improved from 11.3% to 10.5% from Q1 2024 and Q1 2025. In Louisiana, 1 in every 10 mortgages are seriously underwater. The counties with the highest percent of mortgages seriously underwater are Vernon, Saint Martin, Iberville, and Webster.

2. Kentucky

Kentucky saw its seriously underwater mortgage rate fall from 8.3% to 7.3% from Q1 2024 to Q1 2025. However, the state has the second-highest level of seriously underwater mortgages in the country. One in every 14 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Adair, Greenup, Carter, and Marion.

3. Mississippi

Mississippi improved its seriously underwater mortgage rate fall from 7.1% to 6.6%, indicating some recovery in housing equity. However, the state has the third-highest percentage of seriously underwater mortgages. One in every 15 mortgages are seriously underwater in Mississippi. The counties with the highest percent of mortgages seriously underwater are Washington, Lincoln, Pike, and Hinds.

4. Arkansas

Arkansas experienced a minor increase from 5.7% to 5.8% in its% of seriously underwater mortgages, placing it in fourth on the list for seriously underwater mortgage rates. One in every 17 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Columbia (with a significantly higher percentage compared to other counties), Ouachita, Sharp, and Greene.

5. Iowa

Iowa’s rate of seriously underwater mortgages rose slightly from 5.4% to 5.7% from Q1 2024 and Q1 2025, reflecting mild deterioration in mortgage equity. One in every 18 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Appanoose, Tama, Wapello, and Lee.

6. Oklahoma

Oklahoma’s has the sixth highest rate for seriously underwater mortgages although the rate improved significantly, dropping from 6.1% to 5.5% from Q1 2024 and Q1 2025. One in every 18 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Okmulgee, Mccurtain, Woodward, and Pontotock.

7. Illinois

Illinois saw its rate for seriously underwater mortgages decline from 5.2% to 4.8%, a positive shift reflecting ongoing recovery in home equity. One in every 21 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater in Illinois are Mason, Bond, Mcdonough, and Montgomery.

8. North Dakota

North Dakota’s rate for seriously underwater mortgages dropped from 5.1% to 4.8%. This improvement indicates recovery in housing equity. One in every 21 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater in North Dakota are Ward, Williams, Richland, and Stark.

9. Kansas

Kansas is ninth on the list of states with seriously underwater mortgages and saw a major increase in its rate from 2.9% to 4.7%. This was a 1.8-point jump, and the sharpest rise in the country. One in every 21 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Leavenworth, Johnson, Wyandotte, and Butler.

10. Missouri

Missouri experienced a small increase in the rate of seriously underwater mortgages from 4.5% to 4.7%. One in every 21 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Randolph, Dunklin, Crawford, and Butler.

11. West Virginia

West Virginia made strong gains, reducing its rate of seriously underwater mortgages from 5.4% to 4.2%. The 1.2-point year-on year drop reflects the second-largest improvement nationally, suggesting home prices may be rising or foreclosures are slowing. One in every 24 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Marshall, Wayne, Mercer, and Marion.

12. Ohio

Ohio’s seriously underwater mortgage rate declined from 4.3% to 4.1%, continuing a slow trend of improvement. One in every 24 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater in Ohio are Belmont, Pike, Lawrence, and Coshocton.

13. Nebraska

Nebraska’s rate for seriously underwater mortgages increased from 3.7% to 4.1% year on year. One in every 24 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater in Nebraska are Scotts Bluff, Buffalo, Lincoln, and Madison.

14. Pennsylvania

Pennsylvania’s rate for seriously underwater mortgages held steady at 3.9% from Q1 2024 to Q1 2025. The lack of movement reflects a stable but stagnant market where equity recovery remains elusive for many. One in every 26 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater are Jefferson, Juniata, Huntington, and Clearfield.

15. South Carolina

South Carolina’s rate for seriously underwater mortgages jumped from 3.3% to 3.8% — a 0.5-point increase. This suggests growing pressure on homeowners, possibly due to rising insurance and tax burdens in coastal or high-growth regions. One in every 27 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Fairfield (by far), Darlington, Laurens, and Jasper.

16. Alabama

Alabama experienced a slight improvement in its rate for seriously underwater mortgages, which dipped from 3.6% to 3.4%. Although modest, it aligns with the national average and could reflect a slow but steady recovery. One in every 29 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Covington, Mobile, Geneva, and Pike.

17. South Dakota

South Dakota’s seriously underwater mortgage rate rose from 3.0% to 3.4% from Q1 2024 to Q1 2025, pushing it slightly above the national average. One in every 30 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Union, Yankton, Minnehaha, and Meade.

18. Wisconsin

Wisconsin’s underwater mortgage rate remained unchanged at 3.4% from Q1 2024 to Q1 2025. One in every 29 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater in Wisconsin are Buffalo, Rusk, Trempealeau, and Monroe.

19. Georgia

Georgia’s seriously underwater mortgage rate increased to 3.1% from 2.8% from Q1 2024 to Q1 2025. One in every 33 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater in Georgia are Toombs, Coffee, Upson, and Wayne.

20. Tennessee

Tennessee’s seriously underwater mortgage rate rose from 2.8% to 3.1% from Q1 2024 to Q1 2025. One in every 32 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater in Tennessee are Hardeman, Lauderdale, Benton, and Shelby.

21. Indiana

Indiana’s rate for seriously underwater mortgages decreased slightly from 3.1% to 3.0%. This small change suggests relatively stable mortgage equity conditions. One in every 33 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Miami, Washington, Wayne, and Vanderburgh.

22. Maryland

Maryland’s seriously underwater mortgage rate increased modestly from 2.6% to 2.9%. One in every 34 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Dorchester, Baltimore City, Somerset, and Allegany.

23. Michigan

Michigan’s seriously underwater mortgage rate remained steady at 2.9% from Q1 2024 to Q1 2025, indicating a consistent but challenging environment for homeowners with underwater loans. One in every 34 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater are Gogebic, Genesee, Wayne, and Oceana.

24. New Mexico

New Mexico’s rate rose slightly from 2.6% to 2.8% from Q1 2024 and Q1 2025, reflecting mild pressure on homeowner equity. One in every 35 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Roosevelt, Eddy, Lea, and Rio Arriba.

25. Minnesota

Minnesota’s seriously underwater mortgage rate grew marginally from 2.6% to 2.7% from Q1 2024 and Q1 2025. One in every 37 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater in Minnesota are Wadena, Pennington, Todd, and Becker.

26. Utah

Utah saw an increase from 2.1% to 2.6% in its seriously underwater mortgage rate, a 0.5-point rise signaling some increased stress on mortgage equity in the state. One in every 39 mortgages are seriously underwater in Utah. The counties with the highest percent of mortgages seriously underwater are Iron, Washington, Sevier, and Wasatch.

27. Idaho

Idaho’s seriously underwater mortgage rate edged up from 2.4% to 2.5% from Q1 2024 and Q1 2025, indicating minor fluctuations in underwater mortgage levels. One in every 40 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Shoshone (by far), Jerome, Franklin, and Cassia.

28. North Carolina

North Carolina’s seriously underwater mortgage rate increased slightly from 2.3% to 2.5% from Q1 2024 to Q1 2025. One in every 40 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater in North Carolina are Vance, Duplin, Halifax, and Edgecombe.

29. Wyoming

Wyoming’s seriously underwater mortgage rate saw a sharp decline from 8.8% to 2.5%, a 6.3-point improvement that suggests a significant recovery in homeowner equity. One in every 40 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater are Carbon, Converse, Uinta, and Fremont.

30. Maine

Maines rate of seriously underwater mortgages in Q1 2025 was 2.1%. This rate was unchanged from Q1 2024, indicating a stable market. One in every 48 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater in Maine are Washington, Aroostook, Piscataquis, and Somerset.

31. Delaware

Delaware’s seriously underwater mortgage rate decreased from 2.7% to 2.4% from Q1 2024 to Q1 2025, a sign of improving housing market conditions. One in every 41 mortgages are underwater in this state. Sussex county has the highest percentage of seriously underwater mortgages in Delaware.

32. Colorado

Colorado’s seriously underwater mortgage rate increased from 2.0% to 2.3%, indicating a slight uptick in underwater mortgage prevalence. One in every 44 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Otero (by a significant percentage), Las Animas, Logan, and Moffat.

33. Texas

Texas held its rate steady at 2.3% year on year regarding seriously underwater mortgages, suggesting relatively stable housing market conditions with consistent seriously underwater mortgage levels. One in every 43 mortgages are seriously underwater in Texas. The counties with the highest percent of mortgages seriously underwater are Gray, Polk, Hockley, and Cass.

34. Washington

Washington’s seriously underwater mortgage rate rose from 1.6% to 1.9% from Q1 2024 to Q1 2025, reflecting some localized market stress. One in every 52 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Pacific, Chelan, Stevens, and Klickitat.

35. Montana

Montana’s seriously underwater mortgage rate remained unchanged at 1.9% from Q1 2024 to Q1 2025, showing stable conditions in homeowner equity. One in every 53 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater are Lewis and Clark, Yellowstone, Silver Bow, and Cascade.

36. Oregon

Oregon’s seriously underwater mortgage rate inched up from 1.7% to 1.8% from Q1 2024 to Q1 2025. One in every 56 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater in Oregon are Wasco, Malheur, Union, and Clatsop.

37. Arizona

Arizona’s rate rose slightly from 1.6% to 1.8% from Q1 2024 and Q1 2025. One in every 55 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater in Arizona are Graham, Santa Cruz, and Gila.

38. New York

New York saw a decrease from 2.3% to 1.8% in its seriously underwater mortgage rate from Q1 2024 and Q1 2025, a positive sign that some areas are recovering equity. One in every 54 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater are Chenango, Cattaraugus, Saint Lawrence, and Herkimer.

39. New Jersey

New Jersey’s seriously underwater mortgage rate fell slightly from 1.9% to 1.7% from Q1 2024 and Q1 2025. One in every 59 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Salem, Cumberland, Mercer, and Atlantic.

40. Connecticut

Connecticut’s seriously underwater mortgage rate decreased from 1.7% to 1.6%, showing slight progress from Q1 2024 and Q1 2025. One in every 64 mortgages are seriously underwater in this Connecticut. The counties with the highest percent of mortgages seriously underwater are New London, Litchfield, New Haven, and Fairfield.

41. Florida

Florida’s seriously underwater mortgage rate increased from 1.3% to 1.6%. One in every 61 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater in Florida are Charlotte, Gadsden, Jackson, and Putnam.

42. Nevada

Nevada saw a rise in its seriously underwater mortgage rate of from 1.4% to 1.6% from Q1 2024 and Q1 2025. One in every 61 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater in Nevada are Churchill, Nye, Lyon, and Elko.

43. California

California’s seriously underwater mortgage rate inched up from 1.2% to 1.3% from Q1 2024 and Q1 2025, remaining among the states with lower seriously underwater mortgage rates. One in every 75 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Mariposa, Trinity, Siskiyou, and Plumas.

44. Hawaii

Hawaii saw a decrease in its seriously underwater mortgage rate from 1.6% to 1.3% from Q1 2024 and Q1 2025, reflecting improving equity in its housing market. One in every 75 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Honolulu, Hawaii, and Maui.

45. Massachusetts

Massachusetts experienced a small decrease from 1.3% to 1.2% in its seriously underwater mortgage rate from Q1 2024 and Q1 2025, indicating stable but improving conditions. One in every 82 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Berkshire, Suffolk, Hampden, and Hampshire.

46. New Hampshire

New Hampshire’s seriously underwater mortgage rate held steady at 1.1% from Q1 2024 to Q1 2025 with consistent underwater mortgage levels. One in every 94 mortgages are seriously underwater New Hampshire. The counties with the highest percent of mortgages seriously underwater are Cheshire, Grafton, and Coos.

47. Rhode Island

Rhode Island saw a slight decrease in its seriously underwater mortgage rate from 1.1% to 1.0% from Q1 2024 and Q1 2025, indicating marginal improvement. One in every 104 mortgages are seriously underwater in this state. The counties with the highest percent of mortgages seriously underwater are Providence and Bristol.

48. Vermont

Vermont has the third lowest rate for seriously underwater mortgage rates. The rate dipped slightly from 0.8% to 0.7% from Q1 2024 to Q1 2025. One in every 142 mortgages are underwater in Vermont. The counties with the highest percent of mortgages seriously underwater are Washington and Chittenden.

49. Alaska

Alaska’s seriously underwater mortgage rate from Q1 2024 and Q1 2025 remained steady at 2.2% with no change year over year. Alaska has the second-lowest seriously underwater mortgage rate in the nation. One in every 46 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater are Matanuska-Susitna and Juneau.

50. Virginia

Virginia is the state with the lowest level of seriously underwater mortgages. The rate held steady at 2.0% from Q1 2024 and Q1 2025. One in every 51 mortgages are underwater in this state. The counties with the highest percent of mortgages seriously underwater are Pittsylvania, Halifax, Danville City, and Nelson.