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DS News Webcast: Wednesday 12/16/2015

The number of residential homes with negative equity, also referred to as being underwater or upside down, has been steadily declining in the last few years while the number of homes with equity has been on the rise. That is a combination that bodes well not just for housing, but for the overall economy, according to CoreLogic’s Q3 2015 Negative Equity Report released on Tuesday. The report found that 256 thousand residential properties regained equity in the third quarter, bringing the nationwide total to about 46 point 3 million, which calculates to approximately 92 percent of all homes with an outstanding mortgage.

The number of residential properties with a mortgage that had negative equity as of the end of Q3 was at 4 point 1 million, or about 8 percent of all homes nationwide. This represented a decline of nearly 5 percent from Q2 2015 and nearly 21 percent from Q3 of 2014, when 5.2 million homes had negative equity. The aggregate value of the negative equity in those 4.1 million homes in Q3 was 301 billion dollars, nearly a 12 percent decline from Q3 2014 when it was reported to be 341 billion dollars.

Consumer credit default rose for the second consecutive month in November, which is cause to keep a close eye on consumer finances in the coming year, according to the S&P/Experian Consumer Credit Default Indices for November 2015 released Tuesday. The composite rate rose by 3 basis points from October to November, up to zero point 97 percent, while the first mortgage rate crept up by one basis point to zero point 82 percent and the second mortgage rate spiked by 11 basis points up to zero point 67 percent during that same period.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
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