Out of the 1.5 million residential mortgages in the Bay State, 15.4 percent owe more than their house is worth, according to a first quarter report from California-based CoreLogic.

The first quarter report shows only a slight improvement compared to the first quarter 2010 when 15.6 percent of homeowners were paying mortgages on underwater homes.

Another 3.5 percent of Massachusetts homes with mortgages are nearing underwater status (less than 5 percent equity) during the first quarter, according to a statement.

The average borrower in Massachusetts was behind $120,000 – making it the second highest in the nation behind New York’s $129,000. Neighboring Connecticut fared almost as bad with an average of $111,000. The national average underwater balance was $65,000.

However, the commonwealth’s numbers are still better than the nation as a whole, which has 22.7 percent of homeowners paying mortgages on underwater properties. The national number is an improvement over the 24 percent reported during the same time last year.

"Many borrowers in negative equity are still able and willing to make their mortgage payments," said Mark Fleming, chief economist, CoreLogic. "Those in negative equity and impacted by an income shock of some kind, such as a job loss, divorce or death, are much more likely to be at risk of foreclosure or a short sale."

He added: "The current economic indicators point to slow yet positive economic growth, which will slowly reduce the risk of borrowers experiencing income shocks. Yet the existence of negative equity for the foreseeable future will weigh on the housing market recovery by holding back sale and refinance activity."