Key facts
- Home equity reached a record $18 trillion in the second quarter.
- Accelerating home price growth drove the increase in home equity.
- Mortgage delinquencies have increased.
- Foreclosure activity has also increased.
- A significant rise in borrowers underwater on their loans is observed.
Home equity in the United States has reached an all-time high of $18 trillion during the second quarter. This record level of equity is primarily attributed to the accelerating growth of home prices across the nation. However, this positive development in home equity is accompanied by a concerning rise in mortgage delinquencies and foreclosure activities. The data indicates a significant increase in the number of borrowers who are now underwater on their mortgages, meaning they owe more on their loans than their properties are currently valued at. This trend suggests a growing vulnerability within the housing market, despite the overall increase in homeowner equity.