Slower price growth helps homebuyers, hurts underwater mortgages

"As price increases kick in more people are above water on their mortgages, so supply is increasing a little bit." Still, negative equity remains high: about 18.8% of homeowners had underwater..

 · We are left with people making their mortgage payments on time even tho 23% of mortgages are underwater (Case-Shiller). If the underwater mortgages increase to 50% the homeowner’s mortgage payments don’t change.