The FINANCIAL -- For the second month in a row, less than half of America’s homeowners
believe the value of their home is worth more than the amount they still
owe on their mortgage.
The latest Rasmussen Reports national telephone survey of homeowners shows that 49% now believe their home is worth more than their mortgage. While that’s up from June’s all-time low of 45%, it is still just the third time this finding has fallen below 50% since late 2008.
Upper-income homeowners are more confident in their home value than those who earn less. Investors are much more confident than non-investors about their home’s value. Seventy-one percent (71%) of government workers believe their home is worth more than the mortgage. Just 50% of private sector employees and 42% of retirees share such optimism.
This result comes at a time when confidence that home values will improve has fallen to the lowest level ever recorded.
In December 2008, 61% believed their home was worth more than their mortgage. While the numbers have declined since then, this is the first time ever that the number believing they had equity in their home stayed below 50% for two months in a row.
The national telephone survey of 676 Homeowners was conducted on July 17-18, 2011 by Rasmussen Reports. The margin of sampling error is +/- 4 percentage points with a 95% level of confidence.
One in three homeowners (33%) now says his or her home is not worth more than the amount left on the mortgage. Another 18% aren’t sure.
Just seven percent (7%) of homeowners say they’ve missed or been late on a mortgage payment in the last six months. Ninety percent (90%) say that has not happened during that time. These findings are in line with findings in previous months.
Looking ahead, eight percent (8%) of homeowners say it’s at least somewhat likely they will miss or be late on a payment in the next six months. Eighty-nine percent (89%) don’t see this as likely. Those findings include three percent (3%) who are Very Likely to miss or be late on a payment and 48% who say they are Not At All Likely to do so.
The Rasmussen Consumer Index, which measures the economic confidence of consumers on a daily basis, fell to its lowest level of 2011 on Saturday.
After dipping to a two-year low last month, the number of Americans who expect to pay higher interest rates next year has returned to levels found earlier in 2011.
Trust in the U.S. banking industry has steadily slipped over the past three months, and Americans who lack confidence now outnumber those who have a more optimistic view.
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