Homeowners Under Water

ationwide, almost one out of every five homeowners with a mortgage owes more to their lender than their properties are worth. But if you subtract the states where nearly 60% of all homeowners are "under water" (owing more on their mortgage than the home is worth), which includes California, Florida, Arizona, Georgia and Michigan, the rate drops to about one in 10, according to a report released recently by First American CoreLogic.

Rising mortgage rates are making matters worse for prospective borrowers. The rate on a 30-year, fixed-rate mortgage has increased sharply over the past couple of weeks, according to Freddie Mac.

Higher rates coupled with lower home values means fewer people can tap their home equity. The percentage of U.S. homeowners who pulled cash out of their homes remained at a four-year low in the third quarter of this year.

ARE YOU UNDER WATER? : Have falling home prices affected your plans to relocate or refinance? If so, tell us about it by using the "comment" link below. Your identity remains private, as your email address will never be published on this site, even though it is needed in order to post a comment. We’d be interested to hear from you as to how (if at all) mortgage rates and home values are affecting your plans right now.