Posts Tagged ‘home value’

Delinquency Rate Near 10-Year Low

Posted on August 16, 2017 by Laura Lam

The mortgage delinquency rate reached its lowest point in nearly a decade in May due to tighter underwriting, according to CoreLogic. Also improving mortgage performance were employment growth and rising home prices. About 4.5% of mortgages were in some stage of delinquency in May, a decline of 0.8 percentage point from the previous year when the overall delinquency rate was 5.3%. The serious delinquency rate in May remained unchanged from April at 2%, and was at its lowest since November 2007 when it was also 2%. Frank Martell, CoreLogic president and CEO, credits underwriting practices for the delinquency rate improvements.  “A prolonged…

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…

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,…

Home Equity Demand Picks Up

Posted on February 06, 2017 by Laura Lam

Thanks to a confluence of factors, many banks and credit unions are predicting a surge in originations of both home equity loans and home equity lines of credit in 2017.  Driving the demand, bankers said, is that homeowners finally seem ready to take advantage of the appreciation in home values and pull the trigger on home-improvement projects they have been putting off, said Logan Pichel, the head of consumer lending at Regions Financial. Another contributing factor is that banks are carrying relatively low balances of home equity loans, so they have plenty of room to originate new loans. Though it…

Homeowners and Appraisers Don’t See Eye to Eye

Posted on January 20, 2017 by Laura Lam

For the past few months, homeowners’ estimates of their home prices grew closer and closer to the appraised amount, and in November they nearly hit the mark. However, homeowners couldn’t predict December’s sudden decrease.  But for the first time in six months, the gap between homeowner estimates and the appraised prices widened, according to Quicken Loans’ National Home Price Perception Index. The average appraised value fell 1.33% below homeowners’ expectations in December, a greater gap than November’s 1%.  This sudden reversal could be due to home prices slipping in December by 1.19% monthly. Despite the decrease, however, prices were still up by 3.85% annually….

Consumer Delinquencies Hit New Low

Posted on October 24, 2016 by Laura Lam

Consumer delinquencies fell last quarter to their lowest point in at least 15 years, according to quarterly data released by the American Bankers Association (ABA).  The percentage of overdue closed-end loans was 1.35% in the second quarter, down three basis points from the first quarter. The ABA’s so-called composite ratio tracks delinquencies in 8 closed-end installment loan categories including personal, home equity and direct auto loans. It defines a delinquency as a payment that is 30 days or more overdue. The latest figure was the lowest since at least 2001, and it marked nearly 4 years of delinquencies below the…

National Home Values are on the Rise

Posted on September 15, 2016 by Laura Lam

Zillow is reporting that national home values have risen for the 48th straight month as of this July, reaching an average of $187,300 in the latest Zillow Home Value Index (ZHVI).  Home values are up 5% over the past year and have been consistently climbing since August 2012, but still remain 4.7% below peak, which was hit in April 2007 when the median home value was $196,600, Zillow revealed in a new report. Portland, Dallas and Denver reported the highest year-over-year home value appreciation among the 35 largest metros across the country. In Portland, home values rose almost 15% to a…