Homeowners see slower equity gains as housing market cools

  • 📰 chicagotribune
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 91%

Business News News

Business Business Latest News,Business Business Headlines

Homeowner equity climbed to record highs in the first half of this year, though its rate of growth is slowing as the housing market cools.

Average homeowner equity per borrower reached $298,380 in the second quarter, according to data from CoreLogic.That works out to $3.6 trillion in equity gained by U.S. homeowners with a mortgage, which represent about 63% of all homes, the real estate information company said.

Home price growth is likely to continue to slow. CoreLogic forecasts that home prices will increase by 5% over the next year. Rising homeowner equity creates a buffer for borrowers against potential financial hardship, such as job loss. And it can give homeowners financial flexibility to borrow against their equity to finance large purchases, such as home improvement projects, or pay off high-interest debt — a powerful tool as interest rates climb on revolving debt like credit cards.

In the second quarter, 1.3 million homes, or 2.3% of all U.S. homes with a mortgage, were in negative equity, CoreLogic said. That’s down 18% from the same quarter last year.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 8. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Mortgage rates near 7 percent as housing market keeps coolingNew federal data to be released Thursday could show the effects of the Federal Reserve’s latest interest rate hike So more happy news? Is the Fiat system still backed by Gold? Between the republicans disinformation campaign & the Federal Reserve rate hikes, they are recking the stock market & the economy. And the republicans couldn’t be prouder of the losses & that senior citizens are going broke. Payback is coming in November.
Source: washingtonpost - 🏆 95. / 72 Read more »

Dow plunges 600 points as Apple leads broad market sell-offStocks gave back some of the sharp gains seen in the previous session. Yes The greatest economy ever
Source: CNBC - 🏆 12. / 72 Read more »

Mike Novogratz Explains Why the Crypto Market Became More ResilientThe current energy in the crypto market falls behind the one in the equity or bond markets, Novogratz opined.
Source: Crypto_Potato - 🏆 568. / 51 Read more »