If you don’t have as much equity in your home as you might like, you aren’t alone. The percentage of their homes that Americans own is near its lowest point since World War II, the Federal Reserve said Thursday, and many blame falling home prices for this sobering statistic. The average homeowner now has 38 percent equity, down from 61 percent a decade ago.
This obviously isn’t great news. At times, it seemed the Orange county real estate market was improving! Surprisingly, this most recent bleak snapshot of the housing market came as mortgage rates hit a new a low for the year, falling below 4.5 percent for a 30-year fixed loan. But even alluring rates have failed to deliver any lift to the depressed housing industry.
Normally, your home equity rises as you pay off your mortgage. But since home values have fallen dramatically since the bubble in prices burst in 2006, many homeowners are losing equity even though the outstanding balance on their loan is getting smaller. Do not despair and certainly do not stop paying your mortgage. A foreclosure can wreck your credit for years and during these unstable times we need the best credit scores we can get!
If you need to buy or sell your home, call Cheryl Marquis today!