Home Equity & Underwater Report
A recently released report by ATTOM Data Solutions reveals underwater properties are steadily decling, with more than one million shifting status in 2016
The amount of "seriously" underwater properties in the U. S. decreased by over one million, while the amount of "equity rich" properties increased by 1.3 million. Seriously underwater is defined as a property with a loan-to-value ratio 25 percent or more of its fair market value, equity rich is defined as a property with an LTV ratio 50 percent or less.
The opposing gap between the two is a signal of the overall health of the housing market, as well as the potential for short supply to, if marginally, improve.
California was third among the top five states with the most equity rich properties in 2016. Hawaii came in #1 and Vermont at #2
San Jose (51%), San Francisco (47.7%) and Los Angeles (39.2%) were the top metropolitan areas with the most equity rich properties located in California.
How long will the inventory shortage last? With this substantial reversal of trend I'm optimistic it can improve sooner than we think.
Note: This is a selected portion of the report.
Current Mortgage Rates
30 year fixed 4.35% 15 year 3.51% 5/1 ARM 3.51%
Interest rates are slowing rising however the Fed at their last meeting decided to leave the rate as is for now but indicated gradual increases can be expected in 2017.
Single Family Homes in Folsom