The latest home equity report from ATTOM found that 49% of mortgaged residential properties in the U.S. were considered equity-rich, meaning that borrowers owed 50% or less of the value of their home.
That’s the highest level in at least four years, topping even the early-pandemic days when home prices were surging. The percentage of equity-rich properties had fallen for two straight quarters, dropping to 47% last month, before this most recent turnaround.
“The second-quarter market revival bestowed immediate benefits on homeowners around the nation in the form of better profits for sellers and rising equity for those staying put. Equity levels were high even during the recent downturn, and now they are going back up and better than ever,” said Rob Barber, CEO for ATTOM.
An equity cushion has helped limit foreclosures, and only 2.8% of mortgaged homes were seriously underwater in Q2.
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Mortgage Rates Increase
The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week. Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.
