Homeowners earned a total of $ 2.9 trillion in equity in the second quarter of 2021, according to a new report, as home prices continued to rise.
The negative equity share, where a homeowner owes more on their home than they are worth, fell to 2.3% in the second quarter, and 163,000 homeowners clawed back the equity, according to the equity report from the owners of CoreLogic.
Mortgage owners, who make up about 63% of all properties in the United States, saw their net worth increase by 29.3%. This represents an average annual gain of $ 51,500 per borrower.
If you want to take advantage of an increase in the value of your home, consider taking out cash-out refinancing. With today’s record interest rates, you can take money out of your home and possibly lower your monthly mortgage payment even further. Visit Credible to get started and find your personalized interest rate.
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Second quarter consumer confidence hits highest level since pandemic began
As house prices rise, so does Americans’ confidence in the housing market, US News & World Report previously said. By the end of the second quarter, consumer confidence had reached its highest level since the start of the pandemic.
Additionally, in a recent Corelogic consumer survey, 59% of mortgage holders said they were extremely confident in their ability to meet their monthly payments over the coming year.
CoreLogic explained that homeowners were able to stay up to date on their monthly payments due to government arrangements, increased vaccine availability that allowed people to return to work and record homeowners’ equity gains. .
âGrowing homeowners’ equity provides a strong financial cushion for tens of millions of Americans,â said Frank Martell, President and CEO of CoreLogic. âFor those most affected by the pandemic, equity gains will help play a critical role in avoiding foreclosure. Based on expected increases in economic activity and home values ââover the next year, we expect to see further equity gains and a corresponding drop in negative equity, forbearance and foreclosure rates. “
If you want to take advantage of the equity in your home, consider taking out mortgage refinancing amid today’s low interest rates. Refinancing could also help you lower your mortgage payments if you are in financial difficulty. Visit Credible’s online marketplace to compare several lenders at once and see which one has the best rate for you.
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Home equity reaches record highs
A person’s home equity is determined by how much they have paid off their mortgage and by changes in the price of their home. In July, the rise in house prices hit a record high of 19.7% per year, according to the latest S&P CoreLogic Case-Shiller Index Report. This increase is up from the 18.7% annual increase in the previous month, which was also a record.
âReal estate wealth is at an all time high and will support economic activity over the coming year,â said Frank Nothaft, chief economist at CoreLogic. “Higher wealth drives additional consumer spending and also supports room additions and other home investments, adding to overall economic activity.”
Homeowners can take advantage of their new equity through mortgage refinancing and use the funds for home improvement projects or to consolidate high interest debt. Visit Credible to speak with a mortgage expert and get all of your questions answered.
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