Between Q1 2022 and Q1 2023, collective home equity dropped an average of $5,400 per homeowner, marking the first decline since early 2012. The decrease in home equity is due to a combination of increased home prices and rising mortgage rates. Even though this is the first time home equity has decreased in over a decade, it is still higher than it was during the housing market crash in 2008.
Currently, the median home value in the United States is $226,000, which is a 9.1% increase from last year. At the same time, the average 30-year mortgage rate has risen to 3.93%. Because of this, monthly mortgage payments have increased by $76.
The decrease in home equity is hardest on those who are looking to sell their home, as they will not be able to profit as much from the sale. However, this does not mean that now is a bad time to buy a home. In fact, with interest rates at historic lows, now is a great time to buy a home.
You can read this full article at: https://www.housingwire.com/articles/home-equity-levels-decline-0-7-year-over-year-corelogic/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.