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According to the latest report of the new CoreLogic in the second quarter, U.S homeowners with mortgages obtained a collective $2.9 trillion in equity.
CoreLogic said it means that each homeowner saw an average gain of 29.3% in one year’s time.
Mortgage borrowers form close to 63% of all properties. Even in the face of pandemics, 59% of them feel that they can keep up with their current payments in the coming year.
The homeowner equity growth is providing strong financial padding for millions of Americans.
Frank Martell, president, and CEO of CoreLogic said that for those people who have been badly affected by the pandemic, the equity gains will help in keeping the foreclosure at bay.
He added, with the projected increases in economic activity and home values over the next year, there would be a considerable drop in negative equity, and foreclosure.
CoreLogic chief economist Frank Nothaft said that as the high home equity wealth is at a record high it will strengthen economic activity in the coming years.
Meanwhile, there was a fall of 12% in the total number of mortgaged homes in negative equity which is approximately 1.2 million homes. Compared to the second quarter of last year, the negative equity share is down by 30%.
At the end of Q2, the total negative equity nationally was about $268 billion, less by $5.2 billion in Q1 and roughly $18.9 billion lower than in Q2 2020.
Reference Source: MPA
