What Is the Share of Seriously Underwater Mortgages in Q2 2026?
In the second quarter of 2026, the percentage of seriously underwater properties across the U.S. stayed the same quarterly and edged up annually.
Percentage of Seriously Underwater Properties: 3.2% of mortgaged residential properties, where the combined estimated loan balances are at least 25% more than the property’s estimated market value
Monthly change: unchanged from 3.2% in Q1 2026
Year-over-year change: up from 2.7% in Q2 2025
The states with the highest shares of seriously underwater homes in the second quarter were Minnesota, Louisiana, Iowa, Mississippi, and Arkansas.
What’s Driving Q2 2026 Underwater Trends?
The share of seriously underwater homes held at 3.2% in the second quarter of 2026, compared with 3.2% in the prior quarter, and increased from 2.7% a year earlier. Rates rose quarter over quarter in 18 states and year over year in 33 states and the District of Columbia.
Percentage of Seriously Underwater Rates by State – Q2 2026
Below is the complete state by state ranking for the second quarter of 2026, listing each state’s share of seriously underwater properties and four counties with the highest percentages of seriously underwater homes, where available.
1. Louisiana
Percentage of Seriously Underwater Properties: 10.3%
Monthly change: down from 11.8% last quarter
Year-over-year change: down from 11.9% last year
Counties: Jefferson Davis, De Soto, Webster, Avoyelles
2. Iowa
Percentage of Seriously Underwater Properties: 7.8%
Monthly change: up from 6.0% last quarter
Year-over-year change: up from 5.9% last year
Counties: Allamakee, Clay, Winneshiek, Tama
3. Mississippi
Percentage of Seriously Underwater Properties: 6.4%
Monthly change: down from 8.0% last quarter
Year-over-year change: down from 6.5% last year
Counties: Washington, Lauderdale, Neshoba, Pike
4. Arkansas
Percentage of Seriously Underwater Properties: 6.0%
Monthly change: down from 6.4% last quarter
Year-over-year change: up from 5.6% last year
Counties: Columbia, Arkansas, Saint Francis, Ouachita
5. South Dakota
Percentage of Seriously Underwater Properties: 5.7%
Monthly change: up from 3.0% last quarter
Year-over-year change: up from 3.1% last year
Counties: Brown, Union, Hughes, Yankton
6. Kentucky
Percentage of Seriously Underwater Properties: 5.7%
Monthly change: down from 8.5% last quarter
Year-over-year change: down from 7.0% last year
Counties: Floyd, Pike, Adair, Carter
7. Nebraska
Percentage of Seriously Underwater Properties: 4.8%
Monthly change: up from 4.3% last quarter
Year-over-year change: up from 3.8% last year
Counties: Scotts Bluff, Lincoln, Adams, Dawson
8. Oklahoma
Percentage of Seriously Underwater Properties: 4.7%
Monthly change: down from 6.6% last quarter
Year-over-year change: down from 5.6% last year
Counties: Okmulgee, Woodward, Seminole, Beckham
9. Missouri
Percentage of Seriously Underwater Properties: 4.5%
Monthly change: down from 4.9% last quarter
Year-over-year change: up from 4.3% last year
Counties: Dunklin, Howell, Benton, Nodaway
10. Alabama
Percentage of Seriously Underwater Properties: 4.4%
Monthly change: up from 3.7% last quarter
Year-over-year change: up from 3.2% last year
Counties: Pike, Covington, Lauderdale, Geneva
11. Ohio
Percentage of Seriously Underwater Properties: 4.4%
Monthly change: up from 4.3% last quarter
Year-over-year change: up from 3.8% last year
Counties: Highland, Adams, Scioto, Pike
12. Illinois
Percentage of Seriously Underwater Properties: 4.4%
Monthly change: down from 4.9% last quarter
Year-over-year change: up from 4.2% last year
Counties: Mcdonough, Montgomery, Saline, Mason
13. Wisconsin
Percentage of Seriously Underwater Properties: 4.2%
Monthly change: up from 3.5% last quarter
Year-over-year change: up from 3.3% last year
Counties: Saint Croix, Pierce, Polk, Burnett
14. Kansas
Percentage of Seriously Underwater Properties: 4.1%
Monthly change: down from 5.0% last quarter
Year-over-year change: down from 4.4% last year
Counties: Dickinson, Saline, Wyandotte, Cowley
15. West Virginia
Percentage of Seriously Underwater Properties: 4.1%
Monthly change: down from 4.5% last quarter
Year-over-year change: down from 4.3% last year
Counties: Marshall, Raleigh, Mercer, Harrison
16. Michigan
Percentage of Seriously Underwater Properties: 4.0%
Monthly change: up from 3.1% last quarter
Year-over-year change: up from 2.5% last year
Counties: Oceana, Cass, Mason, Kalkaska
17. North Dakota
Percentage of Seriously Underwater Properties: 4.0%
Monthly change: down from 4.3% last quarter
Year-over-year change: down from 5.0% last year
Counties: Stutsman, Richland, Grand Forks, Stark
18. Pennsylvania
Percentage of Seriously Underwater Properties: 3.6%
Monthly change: down from 4.3% last quarter
Year-over-year change: down from 3.7% last year
Counties: Jefferson, Potter, Greene, Fayette
19. Indiana
Percentage of Seriously Underwater Properties: 3.5%
Monthly change: down from 3.7% last quarter
Year-over-year change: up from 3.1% last year
Counties: Miami, Randolph, Washington, Orange
20. Maryland
Percentage of Seriously Underwater Properties: 3.5%
Monthly change: down from 3.8% last quarter
Year-over-year change: up from 2.6% last year
Counties: Baltimore City, Dorchester, Somerset, Allegany
21. Tennessee
Percentage of Seriously Underwater Properties: 3.3%
Monthly change: down from 3.7% last quarter
Year-over-year change: up from 3.0% last year
Counties: Decatur, Carroll, Dyer, Henry
22. Georgia
Percentage of Seriously Underwater Properties: 3.2%
Monthly change: down from 3.5% last quarter
Year-over-year change: unchanged
Counties: Coffee, Pierce, Toombs, Decatur
23. Idaho
Percentage of Seriously Underwater Properties: 3.2%
Monthly change: up from 2.8% last quarter
Year-over-year change: up from 2.4% last year
Counties: Jefferson, Madison, Bingham, Bonneville
24. North Carolina
Percentage of Seriously Underwater Properties: 3.1%
Monthly change: unchanged
Year-over-year change: up from 2.5% last year
Counties: Bladen, Vance, Edgecombe, Columbus
25. Maine
Percentage of Seriously Underwater Properties: 3.1%
Monthly change: up from 2.5% last quarter
Year-over-year change: up from 2.1% last year
Counties: Aroostook, Washington, Piscataquis, Somerset
26. Virginia
Percentage of Seriously Underwater Properties: 2.9%
Monthly change: up from 2.4% last quarter
Year-over-year change: up from 2.0% last year
Counties: Richmond City, Brunswick, Hopewell City, Pittsylvania
27. South Carolina
Percentage of Seriously Underwater Properties: 2.9%
Monthly change: down from 3.6% last quarter
Year-over-year change: down from 3.2% last year
Counties: Clarendon, Darlington, Fairfield, Chesterfield
28. New Mexico
Percentage of Seriously Underwater Properties: 2.7%
Monthly change: down from 3.3% last quarter
Year-over-year change: unchanged
Counties: Lincoln, Otero, Colfax, Rio Arriba
29. Alaska
Percentage of Seriously Underwater Properties: 2.6%
Monthly change: up from 2.2% last quarter
Year-over-year change: up from 2.0% last year
Counties: Fairbanks North Star, Juneau, Anchorage, Matanuska-Susitna
30. Delaware
Percentage of Seriously Underwater Properties: 2.6%
Monthly change: down from 2.8% last quarter
Year-over-year change: up from 2.3% last year
Counties: Kent, Sussex, New Castle
31. Washington
Percentage of Seriously Underwater Properties: 2.5%
Monthly change: up from 2.1% last quarter
Year-over-year change: up from 1.7% last year
Counties: Lewis, Mason, Adams, Grays Harbor
32. Colorado
Percentage of Seriously Underwater Properties: 2.5%
Monthly change: down from 2.8% last quarter
Year-over-year change: up from 2.3% last year
Counties: Otero, Las Animas, Logan, Pueblo
33. Utah
Percentage of Seriously Underwater Properties: 2.4%
Monthly change: down from 2.6% last quarter
Year-over-year change: unchanged
Counties: Box Elder, Sevier, Washington, Iron
34. Wyoming
Percentage of Seriously Underwater Properties: 2.4%
Monthly change: unchanged
Year-over-year change: down from 2.6% last year
Counties: Park, Fremont, Sheridan, Carbon
35. California
Percentage of Seriously Underwater Properties: 2.3%
Monthly change: up from 1.7% last quarter
Year-over-year change: up from 1.4% last year
Counties: Madera, Trinity, Mariposa
36. Texas
Percentage of Seriously Underwater Properties: 2.1%
Monthly change: down from 2.6% last quarter
Year-over-year change: down from 2.3% last year
Counties: Nacogdoches, Starr, Tom Green, Val Verde
37. Florida
Percentage of Seriously Underwater Properties: 2.1%
Monthly change: down from 2.4% last quarter
Year-over-year change: up from 1.8% last year
Counties: Jackson, Gadsden, Franklin, Washington
38. Arizona
Percentage of Seriously Underwater Properties: 2.0%
Monthly change: down from 2.2% last quarter
Year-over-year change: unchanged
Counties: Cochise, Gila, Yavapai, Pinal
39. Hawaii
Percentage of Seriously Underwater Properties: 1.9%
Monthly change: up from 1.8% last quarter
Year-over-year change: up from 1.3% last year
Counties: Honolulu, Hawaii, Maui, Kauai
40. Oregon
Percentage of Seriously Underwater Properties: 1.9%
Monthly change: down from 2.2% last quarter
Year-over-year change: up from 1.8% last year
Counties: Malheur, Josephine, Jackson, Curry
41. Montana
Percentage of Seriously Underwater Properties: 1.9%
Monthly change: unchanged
Year-over-year change: down from 2.0% last year
Counties: Yellowstone, Jefferson, Lincoln, Cascade
42. Nevada
Percentage of Seriously Underwater Properties: 1.6%
Monthly change: down from 2.1% last quarter
Year-over-year change: down from 1.7% last year
Counties: Elko, Nye, Churchill, Lyon
43. New Jersey
Percentage of Seriously Underwater Properties: 1.6%
Monthly change: down from 1.8% last quarter
Year-over-year change: down from 1.7% last year
Counties: Cumberland, Mercer, Salem, Atlantic
44. New York
Percentage of Seriously Underwater Properties: 1.5%
Monthly change: down from 1.9% last quarter
Year-over-year change: down from 2.0% last year
Counties: Franklin, Saint Lawrence, Allegany, Seneca
45. New Hampshire
Percentage of Seriously Underwater Properties: 1.3%
Monthly change: unchanged
Year-over-year change: up from 1.1% last year
Counties: Coos, Sullivan, Grafton, Strafford
46. Massachusetts
Percentage of Seriously Underwater Properties: 1.3%
Monthly change: down from 1.5% last quarter
Year-over-year change: up from 1.1% last year
Counties: Suffolk, Berkshire, Hampshire, Franklin
47. Rhode Island
Percentage of Seriously Underwater Properties: 1.1%
Monthly change: down from 1.2% last quarter
Year-over-year change: up from 0.9% last year
Counties: Kent, Providence, Newport, Bristol
48. Vermont
Percentage of Seriously Underwater Properties: 0.9%
Monthly change: up from 0.7% last quarter
Year-over-year change: up from 0.7% last year
Counties: Addison, Washington, Chittenden
Conclusion
The findings indicate that seriously underwater mortgage rates remained low across the U.S. in the second quarter of 2026. Nationally, seriously underwater homes accounted for 3.2% of mortgaged properties, unchanged from the prior quarter at one decimal place and up from 2.7% a year earlier, while the highest state level rates were in Minnesota, Louisiana, Iowa, Mississippi, and Arkansas. Read ATTOM’s full second quarter 2026 U.S. Home Equity & Underwater Report here.
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