While Dayton’s figure exceeds the nation’s 21.5 percent, it falls below levels recorded in most other metro areas in Ohio, Zillow found.
Levels in Akron, Columbus and Toledo exceeded 26 percent. In Cleveland, 28.8 percent of mortgages were underwater.
When homeowners refinance at lower interest rates, the smaller payment frees up cash so the owner can buy other things, which lifts the economy, or helps struggling borrowers better afford their house payment, said Richard Stock, director of the University of Dayton’s Business Research Group.
However, those saddled with negative equity likely won’t be able to refinance, Stock said. “It would be in all of our interests for some of these people to be able to refinance at lower interest rates,” he said.
Zillow’s study also states that the average home value in the Dayton area was $102,713, down 3.2 percent over the year-ago quarter and 0.2 percent over first quarter 2010.
Springfield saw its average home value hit $91,800, a 3.5 percent decline compared to the year-ago period.
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