The latest meter reading on the share of borrowers whose loan balances exceed the value of their homes showed an improvement. The good news came despite a decline in home values.
During the second quarter, 21.5 percent of borrowers with single-family homes had loan-to-values in excess of 100 percent, according to data reported today by Zillow.
Negative equity was lower than 23.3 percent in the first quarter. It was also an improvement from 23.0 percent in the second-quarter 2009.
The better showing came despite an 0.6 percent decline in home values from the first quarter to $182,500, Zillow reported. U.S. home values were 3.2 percent lower than a year earlier.
California overcame the national trend, with more than a quarter of its markets improving since last year. Home values in five California markets have increased for five consecutive quarters.
But markets in places like Miami and Phoenix have yet to show signs of reaching a bottom.
