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More homeowners are equity rich; fewer underwater

Posted by The Aramco Group on Fri, Aug 10, 2018 @ 14:08 PM

13.6 million property owners nationwide are considered equity rich, thanks to rising home prices. ATTOM Data Solutions’ latest U.S. Home Equity and Underwater Report shows that nearly a quarter of all mortgaged homes in the U.S are equity rich, meaning the combined loan amount secured by the property is 50 or less than the estimated market value.

Despite this growing number of homeowners who are seeing their home values rise, there remains a sizable number of Americans who remain underwater on their mortgages. More than 5.5 million U.S. properties are considered seriously underwater – meaning the balance of their mortgage is at least 25 percent more than the estimated value of their home.

California maintains of the lowest rates of underwater homes in the nation at just 3.8 percent of properties.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.0 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.