underwater

U.S.home values have returned to roughly the same levels they were at in early 2005, near the peak of the housing boom, bringing millions of formerly underwater homeowners back to positive equity, according to new government figures.

The number of homeowners with underwater mortgages continues to fall, with another 850,000 mortgages returning to positive equity in the first quarter of the year.

The number of homeowners with underwater mortgages continued to shrink in the fourth quarter of last year, although at a modest pace.