 More bad news for the ailing housing industry: Home equity, or the percentage of a home's market value over any liens or mortgage-related debt, has been steadily decreasing. The Federal Reserve announced Thursday that Americans' percentage of home equity has fallen below 50%, marking the first time debt has exceeded equity since the Fed started collecting the data in 1945. According to the U.S. Flow of Funds Accounts report, the percentage of homeowners' equity fell to 47.9% in the fourth quarter last year. The total value of equity also took a dive, falling from $9.93 trillion to $9.65 trillion in the fourth quarter last year. Whatsmore, some economists are predicting this percentage to drop even further as declining home prices chip away at equity and home value. And, according to Economy.com, 10% of home owners will have zero or negative equity by the end of March. (Written by: K. Skowronski) Article Source: CNNmoney.com
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