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900,000 Homeowners Underwater: Mortgage Crisis Deepens Again

11/14/2025

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Summary

Story summary

Nearly 900,000 homeowners are underwater on their mortgages, 1.6% of borrowers, the highest in three years.
The issue is most common among recent buyers with low down payments in Florida and Texas.
The American Enterprise Institute says large homebuilders inflate prices via mortgage rate buydowns, increasing negative equity.
Experts warn that a 50-year mortgage plan proposed by U.S. President Donald Trump could slow equity growth and threaten market stability.

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Story summary

Nearly 900,000 homeowners are underwater on their mortgages, 1.6% of borrowers, the highest in three years.
The issue is most common among recent buyers with low down payments in Florida and Texas.
The American Enterprise Institute says large homebuilders inflate prices via mortgage rate buydowns, increasing negative equity.
Experts warn that a 50-year mortgage plan proposed by U.S. President Donald Trump could slow equity growth and threaten market stability.