The number of U.S. homeowners owing more on their home loans than their properties are worth increased at the end of last year, highlighting a continuing source of weakness for the economy.
The number of homeowners who have refinanced their home loans under a revamped federal program for those with sunken property values is rising, but the effort is just starting to reach the most severely "underwater" borrowers.
Rising home prices during the first three months of the year reduced by 700,000 the number of homeowners who owe more than their homes are worth, according to a report released Thursday.
One of the most pernicious effects of the housing bust was the huge number of borrowers stuck in homes worth far less than those properties could be sold for.
The housing market, finally, is recovering. Home prices are up 8 percent over the past year. And that is providing relief to a particular set of homeowners – the underwater borrowers who owe more than their properties are worth. Ove...