The wealth being gained from owning a home in the U.S. is continuing to increase. Approximately one out of every four mortgaged homes have a loan value that is 50 percent or lower than the estimated market value, according to ATTOM Data Solutions. That suggests that 14.5 million homeowners in the U.S. are “equity rich”.
Meanwhile, the number of homeowners who are underwater is declining. Just 3.5 million mortgaged homes in the U.S. are considered “seriously underwater”, meaning the balance on the mortgage is at least 25 percent higher than the home’s estimated value. This represents a stark turnaround from 2012 when there were nearly 12 million homes that fit this description.
California boasts the highest volume of homeowners who are considered “equity rich” with 42.8 percent of properties falling into that category.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.5 percent and 15-year rates are near 3.0 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.