Posts Tagged ‘underwater mortgage’

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….

Homeowners See Equity Rise 11%

Posted on December 14, 2016 by Laura Lam

The amount of equity homeowners hold grew by $726 billion, or 10.8%, in the third quarter of 2016 versus the year before, according to data from CoreLogic.  On a quarterly basis, the equity in residential properties secured by mortgages rose by $227 billion, or 3.1%, CoreLogic reported.  The increase pulled 384,000 borrowers out of negative equity. Altogether, 93.7% of all mortgaged properties are now in positive equity. The rise in home equity was mainly the result of price appreciation. “Home equity rose by $12,500 for the average homeowner over the last four quarters,” said Frank Nothaft, chief economist for CoreLogic….

Making Gains: Rising Values Help Underwater Homeowners

Posted on October 07, 2016 by Laura Lam

About 548,000 U.S. homeowners regained equity in the second quarter, bringing the percentage of homes with positive equity to 92.9% of all mortgaged properties, or approximately 47.2 million homes, according to CoreLogic.  Nationwide, home equity increased by $646 billion, or 9.9%, from the end of the second quarter of 2015 to the end of the second quarter of 2016. Although about 3.6 million homes – or 7.1% of all homes with a mortgage – remained in negative equity, this was, nevertheless, a decrease of 13.2% compared with 4.2 million homes, or 8.2%, in the first quarter and a decrease of…

Some Cities Still Drowning in Underwater Mortgages

Posted on September 21, 2016 by Laura Lam

More than 1 in 10 U.S. homeowners remain underwater on their mortgages.  This number is much less than a year ago and far lower than when the housing bubble burst in 2008 which left nearly a third in negative equity. But in some metros, the share of underwater homes is far higher in urban than suburban areas, reports Zillow. Even as the number of underwater homes keeps plunging nationwide, pockets of negative equity persist in some of the country’s largest metropolitan areas – primarily in the East and Midwest. Places like Cleveland, Detroit, Chicago and Philadelphia remain freighted with underwater homes…

Millennials: Untapped and Unwilling Homebuyers?

Posted on April 09, 2015 by Saldutti

It’s a largely untapped market Realtors can only dream about: more than 80 million Americans ages 20 to 34, prime time for starting families and moving into their first homes. The youthful answer to the industry’s prayers in a home-sale market recovering too slowly.  Though real estate agents and builders have their money riding on a bounce in 2015, they are acknowledging that most so-called millennials can neither afford houses nor want to buy them. Many millennials look at a house as “something you can get underwater on debt with if its value goes south,” said Kevin Gillen, chief economist…

Home Price Growth Slowdown a Mixed Trend for Economy

Posted on August 13, 2014 by Saldutti

Home-price appreciation is slowing, a welcome trend for potential buyers but a troubling one for homeowners still looking for relief from underwater mortgages. Single-family housing prices rose 4.4% in the year that ended in the second quarter, the slowest annual pace since 2012, according to a recent National Association of Realtors report. The association found that median prices for existing single-family homes grew year-over-year in 122 of 173 metropolitan areas it tracked, while prices declined in 47 metro areas. Only 19 areas showed double-digit year-over-year price increases, a substantial drop from the 37 cities that showed such increases in the…

Over 40 Million Modified Mortgages are Underwater

Posted on June 19, 2014 by Saldutti

More than 40% of the 2 million recently modified mortgages facing interest-rate resets are underwater, according to data released Monday by Black Knight Financial Services. By comparison, the firm’s analysis of April mortgage performance showed that the national negative equity rate was 9.4%. “We have seen a continual reduction in the number of underwater borrowers at the national level for some time now, but modified loans show a different picture,” said Kostya Gradushy, manager for loan data and customer analytics. “Given that the data has shown quite clearly that equity—or the lack thereof – is one of the primary drivers…

Housing predictions for 2013

Posted on January 08, 2013 by Saldutti

The bust of the housing market five years ago created one of the cheapest times to buy. Across many parts of the U.S., including some of the priciest markets like New York and Honolulu, it has become cheaper to purchase a home than rent, according to Trulia’s Rent vs. Buy report. Record-low interest rates on mortgages have also made buying more affordable.  That’s changing, however. In 2012, prices hit bottom. Hooray! While that tells us the market is healing, it could also mean buying will be less affordable in 2013. Asking prices for homes for sale rose 3.8% in November from a year earlier…