{"id":1732858,"date":"2022-11-10T06:30:22","date_gmt":"2022-11-10T11:30:22","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1732858"},"modified":"2022-11-10T07:03:10","modified_gmt":"2022-11-10T12:03:10","slug":"american-homeowners-lost-1-3-trillion-in-home-equity-in-the-third-quarter","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/american-homeowners-lost-1-3-trillion-in-home-equity-in-the-third-quarter\/","title":{"rendered":"American Homeowners Lost $1.3 Trillion in Home Equity in the Third Quarter"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Famerican-homeowners-lost-1-3-trillion-in-home-equity-in-the-third-quarter%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1732858&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>In the third quarter, the market lost $1.3 trillion, or 7.6 percent in equity, as home values nationwide began to fall. This marked the largest quarterly decline on record, according to Black Knight, a mortgage software and analytics company.<\/p>\n<p>Following the unprecedented real estate boom of the last two years, signs of a slowing housing market are beginning to emerge.<\/p>\n<p>According to Ben Graboske, president of Black Knight, homeowner equity contracted at a record rate in the third quarter after peaking in the second quarter of this year.<\/p>\n<p>\u201cIn the span of just three months, U.S. mortgage holders saw a total of $1.3 trillion in newly acquired equity evaporate,\u201d Graboske said in a statement.<\/p>\n<figure id=\"attachment_4853032\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/Equity-on-mortgage-properties.png\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy wp-image-4853032 size-full\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/Equity-on-mortgage-properties.png\" alt=\"Epoch Times Photo\" width=\"1026\" height=\"576\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4853032 size-full\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/Equity-on-mortgage-properties.png\" alt=\"Epoch Times Photo\" width=\"1026\" height=\"576\" \/><\/noscript><\/figcaption><\/a> (Black Knight Mortgage Monitor Report, September 2022)<\/figure>\n<p>Homeowner equity reached a height of <a href=\"https:\/\/www.cnbc.com\/2022\/11\/07\/homeowners-lost-1point5-trillion-in-equity-since-may-as-home-prices-drop.html\">$17.6 trillion<\/a> in May, as home values increased by 45 percent since the start of the pandemic.<\/p>\n<p>According to the report, equity among mortgaged homes is now about $1.5 trillion (-8.4%) lower than it was in May, with the average borrower\u2019s equity having dropped by $30,000.<\/p>\n<p>Despite this, \u201cequity positions remain strong,\u201d the report adds, citing that the average mortgage holder has $92,000 more in equity than before the pandemic.<\/p>\n<p>Ominously, however, the proportion of mortgage holders who are \u201cunderwater\u201d\u2014that is, owe more than the current worth of their home\u2014is increasing. \u201cFrom a risk perspective, we\u2019ve already seen the number of underwater borrowers more than double alongside the equity pullback,\u201d Graboske cautioned, while noting that the overall percentage of underwater owners remains historically low.<\/p>\n<p>The vast majority of these underwater mortgage holders purchased their homes in 2022 or late 2021, which coincided with prices \u201cat or near pandemic-era peak prices,\u201d according to Graboske.<\/p>\n<p>The report also\u00a0found that \u201cSan Francisco became the first market to see prices fall year over year in September.\u201d San Francisco\u2019s annual growth rate came in at negative 1.3 percent, with the next lowest growth rate in San Jose, California, at 0.2 percent.<\/p>\n<p>While Florida\u2019s home price growth rates are steadily falling, the state continues to dominate the rankings, with four of its cities ranking in the top five in terms of yearly home price appreciation. Miami\u2019s price appreciation, for example, was the highest in the country, at 22.7 percent year over year.<\/p>\n<p>Black Knight also tracked the impact of Hurricane Ian on the housing market. The report notes that 335,000 properties were in the direct path of the hurricane, suggesting the owners \u201cface a higher risk of property damage and mortgage delinquency.\u201d<\/p>\n<p>In aggregate, this grouping of mortgage holders account for an unpaid balance of roughly $71 billion.<\/p>\n<p>By tracking mortgage payments through the first half of October, Black Knight discovered a slightly higher delinquency rate from property owners located in Ian\u2019s path. The data firm estimates that 20,000\u201325,000 borrowers will be affected.<\/p>\n<p>The report also notes that real estate prices remain elevated compared to 2019 levels.<\/p>\n<p>\u201cDespite price corrections, home values in the nation\u2019s 50 largest markets remain elevated by anywhere from 19 percent to 66 percent since the start of the pandemic.\u201d<\/p>\n<p>This is not, however, likely to be the end of pain for <a href=\"https:\/\/www.theepochtimes.com\/t-homeowners\">homeowners<\/a>, according to Graboske. As he sees it, continued tightening by the Federal Reserve \u201cincreases the potential for even further headwinds in equity lending as well as heightened default risk.\u201d<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-liam-cosgrove\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/LiamCosgrove_WEB.jpg\" alt=\"Liam Cosgrove\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Liam Cosgrove works as a freelance journalist covering business, markets, and finance. He received his bachelor&#8217;s degree in mathematics from the University of California, Santa Barbara.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In the third quarter, the market lost $1.3 trillion, or 7.6 percent in equity, as home values nationwide began to fall. This marked the largest quarterly decline on record, according<\/p>\n","protected":false},"author":1,"featured_media":1732861,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1732858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1732858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1732858"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1732858\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1732861"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1732858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1732858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1732858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}