More than 1 in 3 homeowners in U.S. is rich in equity

More than 1 in 3 homeowners in U.S. is rich in equity

More than 1 in 3 homeowners in U.S. is rich in equity
A boost in home values over the last several months has led to a surge in the number of Americans who have amassed wealth in the form of equity. ATTOM reported this week that 34.4 percent of mortgaged residential properties in the U.S. were considered equity rich in Q2 2021.

The latest data also shows that just 4.1 percent of mortgaged homes were considered seriously underwater. This is down from 5.2 percent in Q1 and 6.2 percent less than a year ago.

For a home to be considered equity rich the combined estimated balance of the loans secured by the property is at least 25 percent less than the property’s estimated value.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.