Mortgage holders lost billions of dollars in Q3: report

U.S. mortgage holders saw a significant decline in wealth in the third quarter, according to Black Knight, a mortgage lending software and analytics firm.

of the black knight Mortgage Monitor Report, released Tuesday, said total lost homeowner wealth in the three-month period reached $1.3 trillion. “This is the largest quarterly decline in the value of the dollar in history and on a percentage basis he is the largest since 2009,” Ben Graboske, president of the firm’s data and analytics division, said in a statement.

Mortgage rates still high, but below 7%

moreover, total homeowners capital It’s down about $1.5 trillion since May when Black Knight said it peaked. From May to the end of September, the average borrower said he lost $30,000, the company said.

A mortgage application was arranged for a photo shoot on July 19, 2012 in San Francisco, California. (David Paul Morris/Getty Images/Getty Images via Bloomberg)

“Homeowner positions generally remain strong, although further declines may be on the horizon,” Graboske said. “whole Stocks of Mortgage Holders That’s still $5 trillion (+46%) above pre-pandemic levels, with average earnings per borrower over that period of over $92,000. ”

Nationwide, less than 500,000 homes are under water, an increase of about 275,000 in four months, according to the Mortgage Monitor Report.

Housing Market Leads US into Recession, Pushes US Backwards: MBA Predictions

house sales

From May to the end of September, the average borrower reportedly lost $30,000. (iStock/iStock)

“Of the approximately 53 million U.S. mortgage holders, only 3.6% are submerged or have less than 10% of their home equity, and about half of that share is in housing,” Grabroske said. pandemic.”

The mortgage lending software and analytics firm noted that median home prices fell 0.52% in September, marking the third straight month of price corrections across the country. Still, in the 50 largest US housing markets, home prices have remained 19% to 66% higher since March 2020, according to Black Knight.

Massachusetts homes for sale in 2020

A For Sale sign in front of a home in Westwood, Massachusetts on October 6, 2020. (AP Photo/Steven Senne, Files/AP Newsroom)

Interest rate sensitive housing market are fighting Rising mortgage rates and soaring home prices. Fannie Mae found in her recent survey that she only 16% of consumers think October is a good time to buy a home. FOX Business previously reported.


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