The number of homeowners we were previously underwater on their mortgages dropped yet again according to the latest report from Black Knight Financial Services. The volume of tappable equity per homeowner has climbed to the highest levels seen in over a decade to $118,000 per borrower. Over the course of 2016, more than one million homeowners went from red to black on their mortgages.
Homes are considered to have negative equity, often referred to as being underwater, when the borrower owes more on the mortgage than the current value of the property. As home values continue to rise nationwide, the number of borrowers underwater has shrunk to 2.2 million or 4.4 percent of all homeowners. This is a significant improvement from figures in 2010 when roughly 30 percent of borrowers fit this description.
Black Knight noted in it's report that there remain certain pockets where recovery has been sluggish. In particular, lower priced homes in certain regions are responsible for nearly fifty percent of the remaining negative equity properties.
Today, conforming no-point 30-year fixed rates are averaging 4.125 percent while the 15-year rates are near 3.375 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.