Thursday, June 13, 2024

FHFA releases statistics, homeowners’ equity status high

The Federal Housing Finance Agency published insight into homeowners’ equity status, which remains high. According to these statistics, negative equity is at its lowest in the past decade. While high-equity mortgages have been consistent recently, mortgages with equity of more than or equal to 30% have risen from 46.1% in the first quarter of 2013 to a 10-year high of 83.3% by the first quarter of 2023. 

Furthermore, percentage equity has increased over the last period. Rising housing prices play a role in this growth; however, if housing prices decrease, the amount homeowners owe will outweigh the worth of their homes.