The number of homeowners in the U.S. who are equity rich is on the rise. As of Q4 2021, 42 percent of Americans with a mortgage were considered equity rich. This means that the amount of money they owe on their home is no more than half (50 percent) than the property’s market value.
ATTOM reported last week that the number of equity rich homeowners is up 12 percent on a year-over-year basis. Just three percent of homes were considered seriously underwater, meaning the mortgage holder owes at least 25 percent more on their loans than what the home is worth.
Equity rich homeowners are able to leverage that equity in a cash-out refinance or a home equity line of credit. These funds can be reinvested in a variety of ways including in home upgrades or to pay off debt.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 2.875 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 (877) 700-0942 and your questions may be featured in an upcoming article.
