42% Of U.S. Homes Are Equity-Rich
Summary
ATTOM released its fourth quarter U.S. Home Equity & Underwater Report, showing that nearly 42% of mortgage residential properties in the United States were considered equity-rich. Since the start of the pandemic, rock-bottom mortgage rates and the desire for a change in landscape caused the market to flood with a wave of new home buyers. Some warning signs of a weakening foundation under the market have emerged in the second half of 2021: the massive decline in home affordability, rising foreclosures, and falling investor profits. The upward surge in inflation posts additional concerns, but this past year saw the biggest improvement in portions of mortgage payers who were either equity rich or underwater. As home prices kept rising, so did the equity built up in residential properties, to the point where close to half of all mortgage payers around the country found themselves in equity-rich territory," said Todd Teta, chief product officer with ATTOM.