Tag Archives: Equity

As housing prices increase, potential homebuyers and fixed-income homeowners might feel the pinch or see long-term financial benefits if they’re invested in home equity, a Freddie Mac study found.

Overall, the number of underwater borrowers is down in the U.S., but a report released today reveals something interesting: those remaining underwater mortgages are largely concentrated in certain price tiers and geographic areas. What three cities claim the most?

Half of those remaining underwater owe at least 20 percent more than their homes are worth.

9.1 million U.S. residential properties were seriously underwater in the first quarter of 2014, according to RealtyTrac's U.S. Home Equity & Underwater Report. Seriously underwater properties, which are homes where the combined loan amount secured by the property is at least 25 percent higher than the property's estimated market value, represented 17 percent of all properties with a mortgage.

The ongoing price recovery and rise in positive equity around the country has been cause for celebration among many industry commentators--but they’re not much comfort to those who continue to struggle to pay their mortgages, Fitch Ratings says in a new release. Over the last two years, Fitch estimates the percentage of borrowers entering foreclosure with positive equity has roughly doubled. “It is clear that rising home prices have had a positive influence on borrower behavior. However, some portion of borrowers still exhibit an inability to recover as the economy has moderately improved,” the agency said in its analysis.

According to Fannie Mae's November National Housing Survey, positive momentum in the housing market has slowed as Americans remain cautious about their personal finances and the overall state of the economy. Nearly two-thirds of those surveyed believe the economy is on the wrong track. Within the next year, 22 percent expect their personal finances to worsen and only 45 percent expect home prices to increase.

Inventories of homes for sale have been slow to bounce back since the 2007-09 recession, despite steady price appreciation since January 2012. Normally, higher prices reflect robust sales. But lately, prices have been rising even though sales remain stuck at relatively low levels, largely due to a lack of inventory. So why are there so few homes for sale? Two Fed economists examine the many factors affecting today's inventory levels.

Perhaps you've known someone who raised money for a documentary or civic project by making an appeal through crowdfunding on the Internet. Now, the concept of pooled resources is being used as an investment vehicle offering equity in homeownership to investors and loan assistance to selected prospective homeowners.