Negative Equity Reaches 12-year Low!

On Wednesday CoreLogic reported that prices in October were up 18 percent on an annual basis, the highest level in more than 45 years and identical to the gain in September. On Thursday, the company put those gains in perspective.

That perspective, contained in its Homeowner Equity Report, is a massive $3.2 trillion gain in home equity during the third quarter of this year. This means that owners of homes with a mortgage, 63 percent of the total, increased their ownership share of their homes by 31.1 percent since the third quarter of 2020, an average annual gain of $56,700 per property. The company says these equity gains provided a crucial barrier against foreclosure for the 1.2 million borrowers who reached the end of forbearance in September.

"Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they've also enabled many to continue building their wealth," said Frank Martell, president and CEO of CoreLogic. "This financial reserve will be especially helpful for homeowners looking to fund renovation projects." By Jann Swanson Mortgage News Daily.