More Than Half of Americans Believe They’re Underwater on Their Mortgage

July 21, 2011 No Comments »

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Americans are becoming increasingly pessimistic about their home values, according to a new poll from Rasmussen Reports.

Despite recent numbers that reveal only about a quarter of mortgages are underwater (worth less than the existing mortgage balance), the company said just 49 percent of respondents believe their home is worth more than the mortgage.

For the second month in a row, more than half of respondents think they’re upside down on their home.

The numbers aren’t as bad as June, when an all-time low of 45 percent indicated they were “right-side up,” but it’s still only the third time the number has dipped below 50 percent.

(What is an underwater mortgage?)

For comparison sake, 61 percent believed their home was worth more than their mortgage back in late 2008.

Government Workers More Upbeat

Interestingly, 71 percent of government workers believe their home is worth more than their mortgage, compared to just 50 percent of private sector employees and 42 percent of retirees.

With regard to mortgage payments, just seven percent said they’ve missed one or been late in the past six months.

And only eight percent of homeowners say it’s “at least somewhat likely” they’ll miss a payment in the next six months.

So that’s the good news – borrowers will continue to make on-time payments with the belief they’ll eventually gain home equity and get out of this mess.

The national telephone survey of 676 Homeowners was conducted between July 17-18.

Read more: Can I refinance with negative equity?

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