CoreLogic reported that homeowners with mortgages, which is 62% of all properties, saw their equity rise $425 Billion or 2.5% year over year, bringing total home equity to a massive $17.5 Trillion. This is the combination of equity gained through amortization and appreciation, which has been strong.
Mortgage Bonds and stocks are both lower to start the day.
CoreLogic Equity Insights
CoreLogic reported that homeowners with mortgages, which is 62% of all properties, saw their equity rise $425 billion or 2.5% year over year, bringing total home equity to a massive $17.5 trillion. This is the combination of equity gained through amortization and appreciation, which has been strong.
On average, homeowners with a mortgage have $311,000 in equity, with $200,000 of that being tappable.
As equity increases, negative equity, or those underwater, decreases. Negative equity is down 3% year over year. There are only 990,000 homes with negative equity, which is only 1.8% of all mortgaged properties or 1% of all owned properties.
Looking at all owned homes, total equity is $37 trillion. That means that the average equity per homeowner is $440,000.
Here are some interesting stats on homeownership in the US:
Fannie Mae and Pulsenomics Home Price Expectations Survey
We have been steadfast that housing would continue to provide a meaningful wealth creation opportunity this year. So far, that has held true. We partake in the Fannie Mae and Pulsenomics housing survey, where we have won the Crystal Ball Award three times and finished in the top 10 twice, including 6th place last year.
The latest data from the top 150 economists in the US was just released, showing the following appreciation forecasts, with the impact on a $500,000 home in parenthesis:
2025
Next 5 years:
Housing should continue to be a great investment. Make sure to share this with your customers.
News This Week
Tomorrow: Productivity and Unit Labor Costs
Wednesday: Mortgage Apps, Consumer Price Index, 10-year Treasury Auction
Thursday: Initial Jobless Claims, Producer Price Index, 30-year Bond Auction
Technical Analysis
Mortgage Bonds are lower, challenging the 100-day Moving Average support level, which is holding for now. If Bonds can stay above this floor, there is a lot of room to the upside.
The 10-year has moved higher and is contending with the 50-day Moving Average. If Yields break above this ceiling, there is another strong ceiling close by at the 200-day Moving Average.
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Demonstrate how delaying a purchase for even a year or two could cost buyers thousands in appreciation, amortization, equity and more. Increase deal flow by showing clients how delaying their purchase could have more of an impact on their long-term wealth than they realize.
