American Equity Shoots Up In Q1 2022

Just under half of all mortgaged residential properties in the U.S. were considered equity-rich in Q1 2022, up to 44.9% from 41.9% in Q4 2021 and 31.9% in Q1 2021, according to a new report from ATTOM. ATTOM’s U.S. Home Equity and Underwater Report shows that only one in 31 homes (3.2%) were considered seriously underwater in Q1 2022, about the same from last quarter but down significantly from 4.7% the year prior. “Homeowners continue to benefit from rising home prices,” said Rick Sharga, Executive Vice President of Market Intelligence for ATTOM.  “Record levels of home equity provide financial security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.…

Morning Roundup (1/28/2022)– Forbearance Plans Up, Rates Flat

Good Morning! Today is Friday, January 28. Economic output in the U.S. grew 5.7% over the past year, the biggest annual increase in decades. Biden told Ukraine’s president that the U.S. was ready to respond forcefully to any Russian aggression. A federal judge revoked Gulf of Mexico oil and gas leases, ruling the Biden administration failed to consider climate change when it sold them. The Mortgage Note Reports Predicting The Future: Higher interest rates will be a big issue for homebuyers in 2022. Will they drive down mortgage business? Rates Settle: After weeks of steadily rising, interests rates stayed steady last week, averaging 3.55%. Black Knight: Forbearance exits rose for the second week in a row, up by 19,000 plans…

Renters Were 3X More Likely To Miss Payments Than Homeowners In September, October

Renters were three times more likely to miss payments than homeowners during September and October, according to research from the Mortgage Bankers Association’s (MBA) Research Institute for Housing American (RIHA). The study, titled Housing-Related Financial Distress During the Pandemic, found that the share of renters who missed, delayed, or made a reduced payment rose to 9.6% in September and 10.9% in October. In July, that number was 9.6%.  The share of homeowners who missed payments declined in the same period, to 3.2% in September, though it rose again in October to 3.8%. In July, that number was 3.8%, while in June it was 4.6%. Of those who missed their June rent, 17.2% also missed their September rent. Of homeowners who…

SitusAMC: Insurance Premium Hikes Coming As Natural Disasters Intensify

Both homeowners and lenders may be underestimating the rising cost of insurance following a growing number of natural disasters, according to a SitusAMC white paper titled “Weathering the Storm: Burgeoning Insurance Costs for Real Estate.” The paper found that natural disasters have impacted residential property nationwide, not just in areas with highly publicized disasters such as California and Florida. The states with the most natural disasters were Texas (where winter storms accounted for 40% in total insurance market losses in 2021), Virginia, and South Dakota. As the number of disasters rises and their severity intensifies, insurance companies will face more risk, leading to higher insurance premiums and reductions in coverage for property owners. “The growing number of climate events has…

Morning Roundup (11/22/2021)– Existing-Home Sales Up, Investors Sue Zillow

Good Morning! Today is Monday, November 11. Kyle Rittenhouse was acquitted on all charges. An SUV that drove into a Wisconsin holiday parade killed at least five people and wounded 40. Two Fox News contributors resigned in protest of a Tucker Carlson documentary featuring debunked conspiracy theories. And in mortgage and housing news… Existing Home Sales: Existing-home sales rose in October for the second month straight, though sales year-over-year are down 5.8%. Zillow Lawsuit: Investors are suing Zillow, saying they made misleading statements about the financial security of Zillow Offers. The law firm helming the claim has put out a call for investors who lost big to join in. Auctions This Week: The Treasury Department is holding auctions for two-,…

Average Homeowner Up $51k Since Q2 2020 As Home Values Soar

Homeowner equity grew $2.9 trillion since Q2 2020, up 29.3%, CoreLogic’s Homeowner Equity Report found. That shakes out to $51,500 in gains for the average borrower. Homeowners with mortgages make up roughly 63% of all residential properties in the U.S. Fifty-nine percent of borrowers reported they felt highly confident in their ability to make their mortgage payments in the coming year.  This is great news for underwater borrowers. The number of homes in negative equity has fallen 30% since Q2 2020. In Q2 2021 alone, the number of underwater homes fell 12% to 1.2 million homes, 2.3% of all mortgaged properties. The national aggregate value of negative equity dropped from $273.2 billion to $268 billion, a year-over-year decrease of about…

Renters Now Outnumber Homeowners In Big City Suburbs

Renters now outnumber homeowners in previously owner-dominated suburbs, and more communities are set to flip soon, according to a report from RentCafe. Over the past ten years, 103 suburbs have flipped their majorities from homeowners to renters. Many of the communities are in suburbs around Miami, Washington, D.C., and Los Angeles. Suburbs in the U.S.’s 50 largest metros gained 4.7 million people in that time, of which 79% are renters.  About 21 million people rent suburban homes in those metros, 3.7 million more than in 2010. The number of renters grew 22% between 2010 and 2019, while the number of suburban homeowners grew by only 3%. Fifty-five percent of renters are under 45 years old with median household earnings around…