92 per cent of mortgaged homes have equity
New data from CoreLogic shows that 268,000 homeowners regained equity in their properties in the first three months of 2016, bringing the total number all mortgaged homes with equity to around 46.7 million or 92 per cent. Total home equity
increased in the first quarter to $762 billion nationwide.
There are still 4 million mortgaged homes in negative equity (8 per cent) but this has fallen from 6.5 per cent at the end of 2015; and down from 10.3 per cent in the first quarter of 2015.
“In just the last four years, equity for homeowners with a mortgage has nearly doubled to $6.9 trillion,” said Frank Nothaft, chief economist for CoreLogic. “The rapid increase in home equity reflects the improvement in home prices, dwindling distressed borrowers and increased principal repayment. These are all positive factors that will provide support to both household balance sheets and the overall economy.”
Of those homes with equity, 18 per cent have less than 20 per cent equity; and 2.2 per cent have less than 5 per cent equity.
Texas had the highest percentage of homes with positive equity at 98.1 per cent, followed by Alaska (97.8 per cent), Hawaii (97.8 per cent), Colorado (97.5 per cent) and Washington (97.2 per cent).
Nevada led the states with high levels of negative equity (17.5 per cent) followed by Florida (15 per cent), Illinois (14.4 per cent), Rhode Island (13.3 per cent) and Maryland (12.9 per cent).
Real estate appraisers announce mutual agreement
Two of North America’s leading real estate valuation associations have agreed the mutual recognition of their qualifications as appraisal standards become more international.
The Appraisal Institute and the Appraisal Institute of Canada will recognize the strength of each other’s educational and professional standards, and ethics.
"This recognition means that clients on either side of the border may confidently engage appraisal professionals with AACI, MAI, CRA or SRA designations, and they will know that the individual holding any of the designations has satisfied rigorous requirements," said Scott Robinson, MAI President of the AI. "As real estate markets have become more global recognition of international qualifications is much more important.”
The agreement was announced at a partnership luncheon held in Winnipeg Thursday.
Mortgage rates down following jobs report
The weaker-than-expected jobs report issued a week ago has brought average mortgage rates down in the week ending June 9.
The Freddie Mac Primary Mortgage Market Survey shows that the average mortgage rate for a 30-year FRM was 3.60 per cent (down from 3.66 per cent a week earlier); 15-year FRM’s averaged 2.87 per cent (2.92); and 5-year ARM’s averaged 2.82 per cent (3.01).
Freddie Mac chief economist Sean Becketti commented: “This week marks the 10th
consecutive week the 30-year rate has averaged under 3.7 per cent, allowing an extended window for homebuyers to take advantage of these historically-low borrowing costs."