Home News The reason why more homeowners were considered ‘equity rich’ in 2022’s first quarter

The reason why more homeowners were considered ‘equity rich’ in 2022’s first quarter

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According to the new ATTOM report, rising home prices have made many homeowners equity rich in the first quarter of 2022. ((((iStock).

In the first quarter of 2022, more Americans were considered “equity rich” amid rising home prices. In other words, we rent less than 50% of the total value of the house. New data From ATTOM Data Solutions.

According to the company’s first quarter 2022 US Home Equity, the number of stock-rich homeowners increased to 44.9% of mortgage holders in the first quarter, 41.9% in the fourth quarter of 2021, and 2021. It increased from 31.9% in the first quarter. And underwater report.

The latest home price data shows that home prices are Almost 20% increase every year In February, according to the S & P Core Logic Case-Shiller US Home Price Index. In some cities, the increase was even higher. In Phoenix, Arizona, home prices rose 32.9%.

“Homeowners continue to benefit from rising home prices,” said Rick Sharga, ATTOM Executive Vice President of Market Intelligence. “Record levels of housing wealth bring financial stability to millions of families and minimize the potential for another housing market to collapse, as seen in 2008. Rising home prices and rising interest rates make it very difficult for first-time buyers to enter the market. “

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Almost three quarters of US Metros confirm double-digit home price increases in first quarter of 2022: NAR data

Seriously the number of underwater homes will decrease from a year ago

Many homeowners see higher home values ​​than ever before, but some struggle because mortgages are higher than current home prices. According to ATTOM data, 3.2% of mortgage homes (1 in 31) were considered serious underwater in the first quarter of 2022.

If a real estate loan is 25% higher than the estimated market value of the real estate, a serious underwater outbreak will occur. According to the report, 3.2% of homes in this category increased slightly from 3.1% of homes with mortgages in the fourth quarter of 2021.

However, it has decreased significantly from 4.7% of the housing a year ago, that is, 1 in 21 properties.

ATTOM reports that across the United States, the number of equity-rich levels of mortgages increased in 48 states, while the proportion of serious underwater housing decreased in 46 states.

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Home price growth accelerated in February with an annual profit of 19.8%, data show

Home equity rises could rise a year ahead, according to economists

Median home prices rose 2% between late 2021 and early 2022, setting a new record of $ 320,500 across the United States, according to an ATTOM report. This is a 17% year-on-year increase and at least 10% increase in most of the United States.

Despite rising home prices, Sharga says it is unlikely that home prices will slow down over the next year. The rise in home prices in the first quarter came amid a surge in homebuyers who rushed to buy homes amid tight supply.

“As the years go by, house prices will rise more slowly, but equity is likely to continue to grow until the rest of 2022,” he said. “Rising interest rates, the highest inflation in 40 years, and the ongoing supply chain disruption caused by the war in Ukraine can weaken demand and delay rising house prices.”

Even homeowners facing foreclosure may have some degree of fairness. In fact, 90% of homes facing the possibility of foreclosures and creditor acquisitions have at least some capital accumulated in them, ATTOM’s report shows.

“Positive equity gives financially deprived homeowners a better option than their responders had during the catastrophe when 33 percent of all homeowners were underwater on mortgages. It should be, “Sharga said. “Hopefully, these borrowers will be able to use their equity to refinance their debt, or use it to sell their property and make a fresh start. . “

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