Equity is the difference between what your home is worth and what you owe on your mortgage. This means, it's a good thing to have – and, these days, nearly half of all homeowners do.
In fact, according to ATTOM Data Solutions' second-quarter 2022 U.S Home Equity & Underwater Report, 48.1 percent of mortgaged residential properties are now considered equity rich - meaning the amount homeowners owe on their home is less than 50 percent of the home's market value. The share of equity-rich homes is up from 34.4 percent last year at the same time and 44.9 percent during the first quarter of this year.
Rick Sharga, executive vice president of market intelligence at ATTOM, says homeowners will continue to make gains, even as the market slows. “While home price appreciation appears to be slowing down due to higher interest rates on mortgage loans, it seems likely that homeowners will continue to build on the record amount of equity they have for the rest of 2022,” Sharga said. As it is, the percentage of equity rich homes is now the highest its ever been.
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