Posts Tagged ‘equity’

Homeowners and Appraisers Still Don’t Agree

Posted on August 15, 2017 by Laura Lam

Across the U.S., homeowners continue to overvalue their home in comparison to appraisers, but the gap is narrowing. Homeowners overestimated property value by 1.55% in July.  Home values are also continuing their upward trend, rising 0.33% last month and 4.21% since last July. Appraisals were below homeowner expectations by 1.55%. Still, this is an improvement over the 1.70% difference in June. Real estate values are heavily influenced by local trends and in many of the hottest markets, appraisals actually came in above homeowner expectations, but in other major areas, they were quite a bit lower. “The home appraisal is one…

Senior Home Equity Hits All-Time High

Posted on August 03, 2017 by Laura Lam

Senior homeowners saw an increase in their home equity in the first quarter of 2017, according to a report from the National Reverse Mortgage Lenders Association (NRMLA).  The report showed homeowners aged 62 and older saw their home equity increase by 3.1% to $6.3 trillion in the first quarter. This is up from $6.13 trillion from the fourth quarter. This growth in housing wealth for seniors was driven by an estimated 2.6%, or $199.3 billion, increase in senior home values, and was offset by a 0.6% increase in senior-held mortgage debt which totaled $9.2 billion. The NRMLA/RiskSpan Reverse Mortgage Market Index, a…

Negative Equity Continues Slow & Steady Decline

Posted on July 31, 2017 by Laura Lam

The U.S. negative equity rate – the share of all homeowners with a mortgage that are underwater, owing more on their home than it is worth – fell to 10.4% in the first quarter of 2017, the 20th straight quarterly decline. But the speed at which negative equity is falling has slowed dramatically. The national negative equity rate fell from 10.5% at the end of 2016 and 12.7% in Q1 2016, leaving slightly more than 5 million Americans with a mortgage underwater. The rate is down substantially from its peak of 31.4% in Q1 2012, when more than 15.7 million Americans…

Underwater Mortgages Doing Swimmingly, at 11-Year Low

Posted on July 17, 2017 by Laura Lam

The number of underwater mortgage borrowers has fallen to below 2 million for the first time since 2006.  According to the recent mortgage report from Black Knight Financial, there is a 16% decline in underwater borrowers in the first quarter of 2017 with 350,000 borrowers regaining equity. “The steady upward trajectory of home prices continues to improve the equity positions of many homeowners,” said Black Knight Data & Analytics Executive Vice President Ben Graboske. “Over the past year, we’ve seen a 35% decline in the total underwater population. As of today, there are 1.8 million underwater borrowers remaining, the first…

Homeowner Equity On the Rise

Posted on June 15, 2017 by Laura Lam

Homeowner equity increased significantly in the first quarter of 2017, according to the Q1 2017 home equity analysis from CoreLogic.  Homeowners with a mortgage, about 63% of all homeowners, saw their equity increase by 11.2% for a total of $766.4 billion since the first quarter last year. The average homeowner gained about $13,400 in equity over the last year. The total number of mortgaged residential properties with negative equity decreased 3% from the fourth quarter to 3.1 million homes, or 6.1% of all mortgaged properties. This is a drop of 24% from 4.1 million homes in the first quarter last year….

Majority of Homes Priced Below Pre-Recession Peak

Posted on May 17, 2017 by Laura Lam

While many reports show that home prices in many markets surpassed their previous peak, Trulia’s new study shows this is just the average, and more homes than not have yet to recover their full value lost in the recession.  When it comes to individual homes, the U.S. housing market has yet to recover, according to the study. It shows just 34.2% of homes reached values surpassing their pre-recession peak. While a full 98% of homes in Denver and San Francisco surpassed their pre-recession peaks, this is not the case across other metros in the U.S. In Las Vegas and Tucson, Arizona,…

Younger Homeowners Opt for HELOCs

Posted on April 18, 2017 by Laura Lam

As interest rates increase, hovering higher than rates last year, buyers have little incentive to refinance their mortgages.  But as refis drop, a whole new loan type rises to take its place – home equity lines of credit (HELOC). While mortgage rates may be high, so are home prices, creating a wealth of new equity for homeowners. Thus, the increase in HELOCs, according to a recent CNBC article by Diana Olick.  More than any other generation, Millennials are utilizing this cash-out mortgage loan.  According to the article, “The last time interest rates rose as much as they have over the…

Home Equity Loans on the Rise

Posted on April 11, 2017 by Laura Lam

Mortgage lenders, along with borrowers, are starting to welcome home equity lines of credit back into the market after the loan product began to disappear in the wake of the financial crisis.  Given their growing prominence in the market, a new report from the American Bankers Association’s Consumer Credit Delinquency Bulletin provides a current pulse on the health of the product by looking at delinquencies.  The report looked at both closed-end loans and open-end loans, since home equity loans fall into both categories. Bankrate explains that there are two types of home equity loans: term, or closed-end loans, and lines of credit, open-end loans.  A home equity…

Tappable Equity Hits 10-Year High

Posted on April 05, 2017 by Laura Lam

An annual home price appreciation of 5.5% during 2016 helped to increase the number of mortgage holders with tappable equity to 39.5 million, according to new data from Black Knight Financial Services (BKFS). More than two-thirds of the tappable equity level belongs to borrowers with current interest rates below today’s 30-year interest rate. Tappable equity – defined as the amount of lendable equity available to a borrower before hitting a combined loan-to-value ratio of 80% – reached the $4.7 trillion mark last year. An equity growth of $570 billion throughout 2016 pushed the total equity level to its highest level since…

Most Markets Hit Record Housing Prices in 2016

Posted on March 02, 2017 by Laura Lam

The fourth quarter of 2016 saw the best quarterly sales pace of the year – but also pushed housing inventory to record lows, and many markets to home prices with record highs, according to the latest quarterly report from the National Association of Realtors (NAR).  Home prices in over half of measured markets either hit or surpassed their previous peak level, according to the report. The median existing single-family home price increased in 89% of measured markets. While 158 of metro areas saw gains from the fourth quarter of 2015, the remaining 20 metros recorded lower home prices than the year…