Us negative equity rate below 20pc for first time in years

The number of homeowners underwater in the US has fallen below 20 per cent for the first time in years, according to Zillow, a sign that the American housing market has recovered significantly.

The site's report shows that 19.4 per cent of all home owners with a mortgage are now in negative equity, which means that nationally more than 9.8 million home owners owe more on their mortgage than their home is worth. However, the statistics show a steadily improving picture, as the negativity equity percentage has decreased for seven quarters in a row, while house prices have risen, freeing almost 3.9 million homeowners last year.