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.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind. Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances. Some articles on this site include hypothetical stories, examples, and scenarios created to illustrate concepts and demonstrate the types of situations Note Servicing Center, Inc. handles. Any names, companies, properties, and circumstances in these examples are fictitious or have been anonymized to protect confidentiality, and any resemblance to actual persons or entities is coincidental. These examples do not describe specific clients and do not guarantee any particular outcome. Some content may be created with the assistance of generative AI tools and may contain errors or omissions. While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.