Black Knight: Mortgage holders will lose $1.3 trillion of equities in Q3 as price correction continues.Nationwide, homes have lost 2.6% of their value in the last three months

  • Median home prices fell 0.52% in September, the third straight month of decline, according to the Black Knight Home Price Index, but the pace has slowed by half over the past two months.
  • Annualized gains slowed to 10.7%, still more than double the long-term normal, indicating continued correction, but the 1.2% drop from August was the smallest in four months is.
  • Despite price adjustments, home prices in the US’s 50 largest markets have continued to rise by 19% to 66% since the start of the pandemic.
  • yet, $10.3 trillion (-7.6%) of recently added stocks disappeared from the market in Q3. This is the largest quarterly dollar decline on record and the largest percentage base since 2009.
  • Equity among mortgaged homes is now nearly $1.5T (-8.4%) off May 2022 Average Borrower Assets Decline at Peak $30,000 from the beginning of this year
  • Equity positions remain strong, although further declines may be on the horizon.Even though he’s $5 trillion (46%) above pre-pandemic levels, the average mortgage holder still $92,000 more equity than before
  • Although the number of underwater homeowners has nearly increased, 275K Last 4 months — population more than doubled — less than 500K Homes are now submerged nationwide
  • Nationally, 3.6% of borrowers are underfunded or have less than 10% equity. That’s about half of its pre-pandemic share.A historically very low share (0.84%) is in a negative stock position

jacksonville, florida, November 7, 2022 /PRNewswire/ — Today, Data and analysis division of Black Knight Co., Ltd. (New York Stock Exchange:BKI) release the latest version Mortgage Monitor Report, based on the company’s industry-leading mortgage, real estate and public records datasets. House prices continue to adjust across the country, and although nationally at a slower pace than the past two months, the impact on homeowner stock levels is becoming apparent. As Black Knight Data & Analytics President Ben Graboske After peaking in the second quarter of this year, homeowner wealth shrank to record levels in the third quarter of 2022.

“In just three months, U.S. mortgage holders combined $1Gravoske said $0.3 trillion in newly acquired shares has evaporated. as reported at the time, hit a record high in the second quarter, while total homeowner wealth peaked mid-quarter in May and has been declining since.Overall, mortgage-to-mortgage equities are now mostly down $1.5T from that point. From a risk standpoint, we’ve already seen Underwater’s number of borrowers more than double his as the stock falls. That said, it’s important to note– 275K Flooded Since May — Fewer than half a million homeowners rent more homes than they’re worth today. Historically speaking, it is still very low.

“Also, as we covered in our previous Mortgage Monitor, the majority of submerged-risk homes were purchased in 2022 and late 2021 at or near peak pandemic-era prices. loans clearly deserve attention, but continued monitoring, to put it in context, only 3.6% of 53M U.S. mortgage holders are either submerged or have less than 10% equity in their homes, and about half of them have been affected by the pandemic. While further declines may be on the horizon, homeowner positions remain broadly firm.Overall mortgage holder capital remains $5 trillion (+46%) above pre-pandemic levels, averaging $92,000 per borrower for the period. Of course, this, combined with higher interest rates, increases the likelihood of further headwinds for equity lending, as well as default risk. ”

This month’s Mortgage Monitor uses disaster alerts from Black Knight and daily mortgage performance data from McDash Flash to assess the impact of Hurricane Ian. florida. of 2.5M FEMA declared outstanding mortgage balances in disaster areas at the county level totaled $500 billion Together, they account for 60% of all mortgaged homes in the state. While this may suggest a broad, high-level estimate of properties likely to be affected by storms, the parcel-level data from Black Knight Disaster Alerts provides much finer detail. To do.Them 2.5M total properties, just 355K Located in the direct path of storms, the risk of property damage and mortgage delinquency is high.another 100K More than 2 million properties (80% of the total) in FEMA declared counties were not on the direct path of a storm, which reduces the risk of economic loss or mortgage default.

By combining affected areas identified from disaster alerts with daily loan-level performance data from McDash Flash, Black Knight is able to compare payments received in affected areas. October 19th to shares received at the same time in September.of florida, counties that did not declare a disaster area made 93.7% of payments in October, just off the 93.9% on the same day in September. But for parcels in Ian’s direct route, 3.3% fewer borrowers (and an additional 1.2% fewer borrowers in the buffer zone) completed his October payment. Most notably, in FEMA-declared counties outside of the identified disaster alerts for direct storm paths and buffer zones, all but 0.5% of borrowers were making mortgage payments, and storm suggests that there were almost seven times as many people on the direct route to It may be more delinquent than those in FEMA-declared counties outside that path. If these deficits continue until the end of the month, about 20-25K borrower of florida Late payment is expected due to the storm.

You can find more information on these and other topics at In this month’s Mortgage Monitor.

About Mortgage Monitor

Black Knight’s Data & Analytics division provides domestic loan-level mortgage data and performance information covering a large portion of the market, including tens of millions of loans across a variety of credit products and over 160 million historical records. I manage a number of repositories. Combining Black Knight HPI and Collateral Analytics home pricing and real estate data provides the most complete, accurate and timely insight into home pricing available, covering 95% of U.S. residential listings down to the zip code level. provides one of the best measurements. Additionally, the company maintains one of the most robust public property record databases available, covering his 99.9% of the U.S. population and households in over 3,100 counties.

Black Knight’s research experts carefully analyze this data to create summaries complemented by dozens of charts and graphs that reflect trends and point-in-time observations in the monthly Mortgage Monitor report. To see the full report, please visit:

About Black Knight

Black Knight, Inc. (NYSE: BKI) is an award-winning software, data and analytics company that drives innovation in mortgage lending, services, real estate, capital markets and secondary markets. Businesses rely on our robust, integrated solutions across the homeownership lifecycle to help retain existing customers, acquire new customers, reduce risk and operate more effectively.

Our clients rely on our proven, comprehensive and scalable products and our unwavering commitment to providing superior client support to achieve their strategic goals and better serve their customers. Find out more about Black Knight here. www.blackknightinc.com/.

SOURCE Black Knight Co., Ltd.

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