Equity-Rich Homes Hit a 5-Year Low
Homeowner equity is still strong, but the cushion is getting thinner.
Equity-rich homes fell to their lowest share since 2021, while seriously underwater loans ticked higher across most of the country.
That matters because equity gives strained owners room to sell, refinance, or hold on.
Now that room is shrinking in more markets at the same time.
Top stories of the week
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Home Equity Rates Continue to Decline in First Quarter
Homeowner equity is still strong, but the cushion is getting thinner. Equity-rich homes fell to their lowest share since 2021, underwater loans ticked higher, and the stress is spreading across most states as prices cool and mortgage rates bite.
New Single-Family Home Prices Drop Further amid Inventory Glut
Builders are cutting deeper to move product. New home prices fell to the lowest level since 2021, incentives are still doing extra work, and sales are holding up because builders are doing what frozen existing-home sellers have resisted.
Mortgage Rates Hit the Highest Level in a Month; First-Time Homebuyers to Drop Out
Applications for a mortgage to purchase a home dropped 4% for the week and were just 5% higher than the same week one year ago. The average loan size on a purchase application increased to $467,300, the highest in the survey’s history dating back to 1990.
Zillow’s April Market Report Shows a Stalled Sales Recovery
The monthly mortgage payment on a typical U.S. home fell 3.4% year over year to $1,829 in April, even as home values edged up 0.7% to $366,712. Homes are taking a bit longer to find a buyer, with the typical listing going pending in 17 days.
Rise of the Zombie HOA
HOA fees are showing up in more listings, but the bigger issue is who controls the money. In “zombie HOAs,” developers can keep control past the handoff date, leaving residents chasing records, elections, and answers as dues keep rising.
Gap between Single-Family Rents & Multifamily Rents Widens to Record High
Inflation is spreading beyond the gas pump. The Fed’s preferred PCE gauge jumped in March, core services hit a 3.7% annualized six-month pace, and the pressure is showing up in chips, software, jewelry, and the wider economy.
