Published by FOX Business | November 8, 2022
The report stated a loss of $1.3 trillion
U.S. mortgage holders saw a massive loss of equity in the third quarter, mortgage-lending software and analytics company Black Knight found.
Black Knight’s Mortgage Monitor Report, released Tuesday, said the total homeowner equity lost in the three-month period amounted to $1.3 trillion. It marked the “largest quarterly decline on record by dollar value and the largest since 2009 on a percentage basis,” company data and analytics president Ben Graboske said in a statement.
Moreover, total homeowner equity had dropped almost $1.5 trillion since May, when Black Knight said it peaked. From May to the end of September, the company said the average borrower lost $30,000.
“While additional declines may be on the horizon, homeowner positions broadly remain strong,” Graboske said. “Overall mortgage holder equity is still $5T (+46%) above pre-pandemic levels, for an average gain of more than $92K per borrower during that period.”
The Mortgage Monitor Report found that less than 500,000 homes across the country are underwater, up roughly 275,000 over a four-month period.
Grabroske stated that “just 3.6% of nearly 53M U.S. mortgage holders are either underwater or have less than 10% equity in their homes – roughly half the share coming into the pandemic.”