The percentage of metro Denver mortgages that are underwater dropped by nearly half year-over-year in the fourth quarter, according to new data from California-based real estate analytics company CoreLogic.
Two percent of residential mortgages in the metro area, or 12,680, were in negative equity in the fourth quarter of 2015, down from 3.8 percent in the same period of 2014.
The fourth-quarter number also represents a slight decrease from third-quarter 2015, when 2.1 percent of area mortgages were underwater.
Underwater mortgages are those on which borrowers owe more than their homes are worth.
The trend in metro Denver matches that seen across the country, with underwater mortgages falling by 19 percent year-over-year in the fourth quarter from 5.3 million homes to 4.3 million.
“In fourth-quarter of last year, home equity increased by $680 billion or 11.5 percent, the thirteenth consecutive quarter of double-digit growth,” said Frank Nothaft, chief economist for CoreLogic (NYSE: CLGX). “The improvement in equity reflects positive home prices and continued de-leveraging of mortgage balances by households.”
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