Two companies have issued reports on the strong gains
in homeowner equity. Not only is this an indication of building household
wealth and the ability of the housing market to withstand some of the economic
damage of the pandemic according to ATTOM Data Systems in its first quarter U.S
Home Equity and Underwater Report, but the CoreLogic, in a blog entry, says the
equity  could help prevent widespread mortgage
defaults and foreclosures
as government pandemic support fades. ATTOM reports that 17.8 million U.S. homes were, in its words, “equity rich”
in Q1. That is, the combined loan-to-value ratio (CLTV) of their mortgages was
50 percent or less. The 17.8 million homes represent 31.9 percent or one out of
every three of the 55.8 million mortgaged homes in the U.S. This up from 30.2
percent in the fourth quarter of 2020, and 26.5 percent in the first quarter of
2020.

 

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