Go Back

Half of Prime Mortgage Borrowers Will Soon Be Underwater

A new analysis from credit rating company Fitch Ratings revealed that a third of prime borrowers are currently underwater on their mortgages. The company expects roughly half of prime borrowers, those at the top of the credit score range, to end up in a negative equity position thanks to a further 10 percent decline in home prices.

Fitch noted that over 12 percent of prime borrowers are already seriously delinquent on their mortgages, aka on the road to foreclosure.

Fitch believes that borrower equity is the “pre-eminent driver of mortgage default performance.” If borrowers don't have home equity, there’s a good chance they’ll give up and walk.

© 2006 - 2022. All Rights Reserved.