Seriously Underwater Mortgages – Q2 2026 State Rankings
Industry Update
September 11, 2026
Source: ATTOM
What Is the Share of Seriously Underwater Mortgages in Q2 2026?
In the second quarter of 2026, the percentage of seriously underwater properties across the U.S. stayed the same quarterly and edged up annually.
Percentage of Seriously Underwater Properties: 3.2% of mortgaged residential properties, where the combined estimated loan balances are at least 25% more than the property’s estimated market value
Monthly change: unchanged from 3.2% in Q1 2026
Year-over-year change: up from 2.7% in Q2 2025
The states with the highest shares of seriously underwater homes in the second quarter were Minnesota, Louisiana, Iowa, Mississippi, and Arkansas.
What’s Driving Q2 2026 Underwater Trends?
The share of seriously underwater homes held at 3.2% in the second quarter of 2026, compared with 3.2% in the prior quarter, and increased from 2.7% a year earlier. Rates rose quarter over quarter in 18 states and year over year in 33 states and the District of Columbia.
Percentage of Seriously Underwater Rates by State – Q2 2026
Below is the complete state by state ranking for the second quarter of 2026, listing each state’s share of seriously underwater properties and four counties with the highest percentages of seriously underwater homes, where available.
- Minnesota
Percentage of Seriously Underwater Properties: 12.1%
Monthly change: up from 3.0% last quarter
Year-over-year change: up from 2.6% last year
Counties: Isanti, Mille Lacs, Todd, Meeker
- Louisiana
Percentage of Seriously Underwater Properties: 10.3%
Monthly change: down from 11.8% last quarter
Year-over-year change: down from 11.9% last year
Counties: Jefferson Davis, De Soto, Webster, Avoyelles
- Iowa
Percentage of Seriously Underwater Properties: 7.8%
Monthly change: up from 6.0% last quarter
Year-over-year change: up from 5.9% last year
Counties: Allamakee, Clay, Winneshiek, Tama
- Mississippi
Percentage of Seriously Underwater Properties: 6.4%
Monthly change: down from 8.0% last quarter
Year-over-year change: down from 6.5% last year
Counties: Washington, Lauderdale, Neshoba, Pike
- Arkansas
Percentage of Seriously Underwater Properties: 6.0%
Monthly change: down from 6.4% last quarter
Year-over-year change: up from 5.6% last year
Counties: Columbia, Arkansas, Saint Francis, Ouachita
- South Dakota
Percentage of Seriously Underwater Properties: 5.7%
Monthly change: up from 3.0% last quarter
Year-over-year change: up from 3.1% last year
Counties: Brown, Union, Hughes, Yankton
- Kentucky
Percentage of Seriously Underwater Properties: 5.7%
Monthly change: down from 8.5% last quarter
Year-over-year change: down from 7.0% last year
Counties: Floyd, Pike, Adair, Carter
- Nebraska
Percentage of Seriously Underwater Properties: 4.8%
Monthly change: up from 4.3% last quarter
Year-over-year change: up from 3.8% last year
Counties: Scotts Bluff, Lincoln, Adams, Dawson
- Oklahoma
Percentage of Seriously Underwater Properties: 4.7%
Monthly change: down from 6.6% last quarter
Year-over-year change: down from 5.6% last year
Counties: Okmulgee, Woodward, Seminole, Beckham
- Missouri
Percentage of Seriously Underwater Properties: 4.5%
Monthly change: down from 4.9% last quarter
Year-over-year change: up from 4.3% last year
Counties: Dunklin, Howell, Benton, Nodaway
- Alabama
Percentage of Seriously Underwater Properties: 4.4%
Monthly change: up from 3.7% last quarter
Year-over-year change: up from 3.2% last year
Counties: Pike, Covington, Lauderdale, Geneva
- Ohio
Percentage of Seriously Underwater Properties: 4.4%
Monthly change: up from 4.3% last quarter
Year-over-year change: up from 3.8% last year
Counties: Highland, Adams, Scioto, Pike
- Illinois
Percentage of Seriously Underwater Properties: 4.4%
Monthly change: down from 4.9% last quarter
Year-over-year change: up from 4.2% last year
Counties: Mcdonough, Montgomery, Saline, Mason
- Wisconsin
Percentage of Seriously Underwater Properties: 4.2%
Monthly change: up from 3.5% last quarter
Year-over-year change: up from 3.3% last year
Counties: Saint Croix, Pierce, Polk, Burnett
- Kansas
Percentage of Seriously Underwater Properties: 4.1%
Monthly change: down from 5.0% last quarter
Year-over-year change: down from 4.4% last year
Counties: Dickinson, Saline, Wyandotte, Cowley
- West Virginia
Percentage of Seriously Underwater Properties: 4.1%
Monthly change: down from 4.5% last quarter
Year-over-year change: down from 4.3% last year
Counties: Marshall, Raleigh, Mercer, Harrison
- Michigan
Percentage of Seriously Underwater Properties: 4.0%
Monthly change: up from 3.1% last quarter
Year-over-year change: up from 2.5% last year
Counties: Oceana, Cass, Mason, Kalkaska
- North Dakota
Percentage of Seriously Underwater Properties: 4.0%
Monthly change: down from 4.3% last quarter
Year-over-year change: down from 5.0% last year
Counties: Stutsman, Richland, Grand Forks, Stark
- Pennsylvania
Percentage of Seriously Underwater Properties: 3.6%
Monthly change: down from 4.3% last quarter
Year-over-year change: down from 3.7% last year
Counties: Jefferson, Potter, Greene, Fayette
- Indiana
Percentage of Seriously Underwater Properties: 3.5%
Monthly change: down from 3.7% last quarter
Year-over-year change: up from 3.1% last year
Counties: Miami, Randolph, Washington, Orange
- Maryland
Percentage of Seriously Underwater Properties: 3.5%
Monthly change: down from 3.8% last quarter
Year-over-year change: up from 2.6% last year
Counties: Baltimore City, Dorchester, Somerset, Allegany
- Tennessee
Percentage of Seriously Underwater Properties: 3.3%
Monthly change: down from 3.7% last quarter
Year-over-year change: up from 3.0% last year
Counties: Decatur, Carroll, Dyer, Henry
- Georgia
Percentage of Seriously Underwater Properties: 3.2%
Monthly change: down from 3.5% last quarter
Year-over-year change: unchanged
Counties: Coffee, Pierce, Toombs, Decatur
- Idaho
Percentage of Seriously Underwater Properties: 3.2%
Monthly change: up from 2.8% last quarter
Year-over-year change: up from 2.4% last year
Counties: Jefferson, Madison, Bingham, Bonneville
- North Carolina
Percentage of Seriously Underwater Properties: 3.1%
Monthly change: unchanged
Year-over-year change: up from 2.5% last year
Counties: Bladen, Vance, Edgecombe, Columbus
- Maine
Percentage of Seriously Underwater Properties: 3.1%
Monthly change: up from 2.5% last quarter
Year-over-year change: up from 2.1% last year
Counties: Aroostook, Washington, Piscataquis, Somerset
- Virginia
Percentage of Seriously Underwater Properties: 2.9%
Monthly change: up from 2.4% last quarter
Year-over-year change: up from 2.0% last year
Counties: Richmond City, Brunswick, Hopewell City, Pittsylvania
- South Carolina
Percentage of Seriously Underwater Properties: 2.9%
Monthly change: down from 3.6% last quarter
Year-over-year change: down from 3.2% last year
Counties: Clarendon, Darlington, Fairfield, Chesterfield
- New Mexico
Percentage of Seriously Underwater Properties: 2.7%
Monthly change: down from 3.3% last quarter
Year-over-year change: unchanged
Counties: Lincoln, Otero, Colfax, Rio Arriba
- Alaska
Percentage of Seriously Underwater Properties: 2.6%
Monthly change: up from 2.2% last quarter
Year-over-year change: up from 2.0% last year
Counties: Fairbanks North Star, Juneau, Anchorage, Matanuska-Susitna
- Delaware
Percentage of Seriously Underwater Properties: 2.6%
Monthly change: down from 2.8% last quarter
Year-over-year change: up from 2.3% last year
Counties: Kent, Sussex, New Castle
- Washington
Percentage of Seriously Underwater Properties: 2.5%
Monthly change: up from 2.1% last quarter
Year-over-year change: up from 1.7% last year
Counties: Lewis, Mason, Adams, Grays Harbor
- Colorado
Percentage of Seriously Underwater Properties: 2.5%
Monthly change: down from 2.8% last quarter
Year-over-year change: up from 2.3% last year
Counties: Otero, Las Animas, Logan, Pueblo
- Utah
Percentage of Seriously Underwater Properties: 2.4%
Monthly change: down from 2.6% last quarter
Year-over-year change: unchanged
Counties: Box Elder, Sevier, Washington, Iron
- Wyoming
Percentage of Seriously Underwater Properties: 2.4%
Monthly change: unchanged
Year-over-year change: down from 2.6% last year
Counties: Park, Fremont, Sheridan, Carbon
- California
Percentage of Seriously Underwater Properties: 2.3%
Monthly change: up from 1.7% last quarter
Year-over-year change: up from 1.4% last year
Counties: Madera, Fresno, Trinity, Mariposa
- Texas
Percentage of Seriously Underwater Properties: 2.1%
Monthly change: down from 2.6% last quarter
Year-over-year change: down from 2.3% last year
Counties: Nacogdoches, Starr, Tom Green, Val Verde
- Florida
Percentage of Seriously Underwater Properties: 2.1%
Monthly change: down from 2.4% last quarter
Year-over-year change: up from 1.8% last year
Counties: Jackson, Gadsden, Franklin, Washington
- Arizona
Percentage of Seriously Underwater Properties: 2.0%
Monthly change: down from 2.2% last quarter
Year-over-year change: unchanged
Counties: Cochise, Gila, Yavapai, Pinal
- Hawaii
Percentage of Seriously Underwater Properties: 1.9%
Monthly change: up from 1.8% last quarter
Year-over-year change: up from 1.3% last year
Counties: Honolulu, Hawaii, Maui, Kauai
- Oregon
Percentage of Seriously Underwater Properties: 1.9%
Monthly change: down from 2.2% last quarter
Year-over-year change: up from 1.8% last year
Counties: Malheur, Josephine, Jackson, Curry
- Montana
Percentage of Seriously Underwater Properties: 1.9%
Monthly change: unchanged
Year-over-year change: down from 2.0% last year
Counties: Yellowstone, Jefferson, Lincoln, Cascade
- Nevada
Percentage of Seriously Underwater Properties: 1.6%
Monthly change: down from 2.1% last quarter
Year-over-year change: down from 1.7% last year
Counties: Elko, Nye, Churchill, Lyon
- New Jersey
Percentage of Seriously Underwater Properties: 1.6%
Monthly change: down from 1.8% last quarter
Year-over-year change: down from 1.7% last year
Counties: Cumberland, Mercer, Salem, Atlantic
- New York
Percentage of Seriously Underwater Properties: 1.5%
Monthly change: down from 1.9% last quarter
Year-over-year change: down from 2.0% last year
Counties: Franklin, Saint Lawrence, Allegany, Seneca
- New Hampshire
Percentage of Seriously Underwater Properties: 1.3%
Monthly change: unchanged
Year-over-year change: up from 1.1% last year
Counties: Coos, Sullivan, Grafton, Strafford
- Massachusetts
Percentage of Seriously Underwater Properties: 1.3%
Monthly change: down from 1.5% last quarter
Year-over-year change: up from 1.1% last year
Counties: Suffolk, Berkshire, Hampshire, Franklin
- Rhode Island
Percentage of Seriously Underwater Properties: 1.1%
Monthly change: down from 1.2% last quarter
Year-over-year change: up from 0.9% last year
Counties: Kent, Providence, Newport, Bristol
- Vermont
Percentage of Seriously Underwater Properties: 0.9%
Monthly change: up from 0.7% last quarter
Year-over-year change: up from 0.7% last year
Counties: Addison, Washington, Chittenden
Conclusion
The findings indicate that seriously underwater mortgage rates remained low across the U.S. in the second quarter of 2026. Nationally, seriously underwater homes accounted for 3.2% of mortgaged properties, unchanged from the prior quarter at one decimal place and up from 2.7% a year earlier, while the highest state level rates were in Minnesota, Louisiana, Iowa, Mississippi, and Arkansas.
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