Research by economists at the Cleveland Fed finds that people with underwater mortgages are slightly more likely to relocate.
By Teresa at MSN Real Estate Fri 2:11 PM
Contrary to popular opinion, having an underwater mortgage does not discourage an unemployed homeowner from relocating.
At least that’s the conclusion reached by a team of researchers from the Federal Reserve Bank of Cleveland. In fact, the researchers found that homeowners with less equity were statistically more likely to move.
“If a hypothetical unemployed, underwater homeowner gets a job offer, he is going to take it,” wrote Yuliya Demyanyk, a senior research economist for the Cleveland Fed and one of the authors of the report.
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