Negative Equity for US Homeowners Hits 12-year Low, CoreLogic Report Reveals
Originally published on March 10, 2022, by MBA NewsLink Staff for Mortgage Bankers Association.
CoreLogic, Irvine, Calif., said just 2.1% of U.S. homeowners with a mortgage were underwater as of the fourth quarter, the lowest level since 2010, as borrowers gained more than $3.2 trillion in equity in 2021.
The company’s quarterly Homeowner Equity Report showed U.S. homeowners with mortgages (63% of all properties) saw their equity increase by 29.3% year over year, representing a collective equity gain of more than $3.2 trillion, and an average gain of $55,300 per borrower, from a year ago.
“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth,” said Frank Nothaft, chief economist with CoreLogic. “For low- and moderate-income homeowners, home equity has historically been a major source of wealth.”