The Federal Reserve confirmed earlier this month what was likely predictable considering constant home price increases: home equity wealth has reached a new all-time high. According to the report as of mid-2017 home equity nationwide is $13.9 trillion, a half trillion dollars higher than the record set in 2006. This data also confirms how much the economy has recovered since the recession when equity levels were a mere $6 trillion.
Although several factors may affect aggregate equity levels, the latest increases are undoubtedly attributed to rises in home values. As a result many homeowners who were previous underwater have seen their net worth restored to levels not seen since prior to the Great Recession a decade ago. Negative equity homeowners with a mortgage has fallen from 26 percent in 2009 to just 5.4 percent as of 2017.
Should home prices continue to climb more records are likely to be broken in the coming year. Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates near 3.25 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.