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- The average homeowner just gained another $25K in equity
The average homeowner just gained another $25K in equity
Plus: CFPB director open to changing mortgage regs to fix refi process
🏁 Welcome to Friday! You made it. Today’s newsletter is 653 words, a 2.5-minute read.
Disclaimer: Average mortgage rates as of Sep 12, 2024. © MND Daily Rate Index.
1. The average homeowner just gained another $25K in equity
According to a report released by CoreLogic® for the second quarter of 2024, U.S. homeowners with mortgages, which account for roughly 62% of all properties, saw their home equity increase by 8.0% year-over-year.
This represents a collective gain of $1.3 trillion and an average increase of $25,000 per borrower since the second quarter of 2023, bringing the total net homeowner equity to over $17.6 trillion in the second quarter of 2024.
“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”
2. Falling rates mean housing payments are now more affordable than a year ago despite higher prices
High home prices are being partially offset by the lowest housing payments since January – a byproduct of falling mortgage rates.
The median U.S. monthly housing payment was $2,558 during the four weeks ending September 8, close to where it was at the start of the year and down 1.3% from a year earlier, according to a new report from Redfin.
That marks the second-largest decline in more than four years, just behind the 1.6% drop reported two weeks earlier.
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3. More Nuggets
🏢 OCC hits Wells Fargo with AML enforcement action. (BankingDive)
⚖️ Former NAR employee files sexual harassment suit against trade group. (NYTimes)
📊 Housing markets where homes sell the most above list—and the most below list. (ResiClub)
🛠️ CFPB director open to changing mortgage regs to fix refi process. (HousingWire)
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4. Inflation remains subdued, as Fed preps rate cut
The Consumer Price Index climbed 2.5 percent in August from a year earlier, a notably cooler pace of inflation than July’s 2.9 percent and down sharply from a peak of 9.1 percent back in 2022.
Federal Reserve officials are widely expected to make their first interest rate cut in more than four years next week, and the fresh inflation reading — which was the coolest in more than three years — is the final major economic puzzle piece before that move.
5. Mortgage applications increase for third straight week
According to data from the MBA's Weekly Applications Survey, mortgage applications increased 1.4% for the first week of September, accounting for the Labor Day holiday.
The refinance index increased 1% week over week but was 106% higher than the same week a year ago. MBA's seasonally adjusted purchase index increased 2% from one week earlier.
“With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year’s pace. However, there is still somewhat limited refinance potential as many borrowers still have sub-5 percent rates. It is a positive development that there are homeowners who can benefit from a refinance as rates continues to move lower.”
☀️ You’re all caught up. See you on Monday!
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