{"id":1775741,"date":"2022-12-15T06:30:34","date_gmt":"2022-12-15T11:30:34","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1775741"},"modified":"2022-12-15T07:18:33","modified_gmt":"2022-12-15T12:18:33","slug":"more-and-more-americans-facing-mortgages-higher-than-their-homes-worth","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/more-and-more-americans-facing-mortgages-higher-than-their-homes-worth\/","title":{"rendered":"More and More Americans Facing Mortgages Higher Than Their Home\u2019s Worth"},"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\">22<\/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%2Fmore-and-more-americans-facing-mortgages-higher-than-their-homes-worth%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=1775741&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-->\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Florida Rep. Kat Cammack and former Trump economic adviser Steve Moore discuss inflation and Arizona Sen. Kyrsten Sinema&#8217;s departure from the Democratic Party on &#8216;The Evening Edit.&#8217;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>An alarming number of new homeowners are discovering they owe more on their mortgage than their home is worth as surging interest rates send housing prices spiraling down.\u00a0<\/p>\n<p>About 250,000 Americans who took out a mortgage this year to buy a home are now underwater, meaning the home is worth less than the loan they took out on it, according to new data from Black Knight. Another 1 million have less than 10% equity. \u00a0<\/p>\n<p>That&#8217;s because the highest mortgage rates in decades, combined with already steep home prices, have made it one of the worst times in a generation for consumers to buy a new house.<\/p>\n<p>&#8220;Though the home price correction has slowed, it has still exposed a meaningful pocket of equity risk,&#8221; said Ben Graboske, the Black Knight data and analyst president. &#8220;Make no mistake: negative equity rates continue to run far below historical averages, but a clear bifurcation of risk has emerged between mortgaged homes purchased relatively recently versus those bought early in or before the pandemic.&#8221;\u00a0<\/p>\n<p><a href=\"https:\/\/foxbusiness.com\/economy\/us-home-prices-could-plunge-20-amid-risks-severe-correction-dallas-fed-says\" target=\"_blank\" rel=\"noopener\"><strong><u>HOME PRICES COULD PLUNGE 20% AMID RISKS OF &#8216;SEVERE&#8217; CORRECTION, DALLAS FED SAYS<\/u><\/strong><\/a><\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/09\/931\/523\/Home-Sales-Mortgage-Rates.jpg?ve=1&#038;tl=1\" alt=\"Massachusetts home for sale in 2020\"   style=\"display:none\"><\/div>\n<div class=\"caption\">\n<p><span>A for sale sign stands in front of a house on Oct. 6, 2020, in Westwood, Massachusetts.<\/span><span> (AP Photo\/Steven Senne, File \/ AP Newsroom)<\/span><\/p>\n<\/div>\n<\/div>\n<p>During the COVID-19 pandemic, home prices soared at a pace not seen since the 1970s with mortgage rates near a record low. Homebuyers \u2013 flush with stimulus cash and eager for more space during the pandemic \u2013 flocked to the suburbs; demand was so strong, and inventory so low, at the height of the market, that some buyers waived home inspections and appraisals, or paid hundreds of thousands over asking price.\u00a0<\/p>\n<p>But painfully high inflation and rising borrowing costs have proven to be a lethal combination for the housing market, sapping consumer demand and sending home prices tumbling.\u00a0<\/p>\n<p>In total, about 8% of mortgages taken out this year are underwater, or roughly one in 12 homes bought in 2022. The situation is even worse for individuals with government-backed mortgages, according to Black Knight: About 25% of those buyers this year are now underwater.\u00a0<\/p>\n<p><a href=\"https:\/\/foxbusiness.com\/economy\/us-housing-recession-what-that-means\" target=\"_blank\" rel=\"noopener\"><strong><u>THE US IS IN A HOUSING RECESSION: WHAT THAT MEANS<\/u><\/strong><\/a><\/p>\n<p>&#8220;This is an illustrative and, unfortunately, potentially vulnerable cohort that we will continue to keep a close eye on in the months ahead,&#8221; Graboske said.\u00a0<\/p>\n<p>The problem could get worse before it begins to improve. Some experts see <a href=\"https:\/\/foxbusiness.com\/economy\/us-home-prices-could-plunge-20-amid-risks-severe-correction-dallas-fed-says\" target=\"_blank\" rel=\"noopener\">prices falling as much as 20%<\/a> over the next year as a result of higher mortgage rates.<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/07\/931\/523\/GettyImages-1241733217.jpg?ve=1&#038;tl=1\" alt=\"Housing market\" \/><\/div>\n<div class=\"caption\">\n<p><span>Houses in the Harris Ranch community of Boise, Idaho, on July 1, 2022.<\/span><span> (Jeremy Erickson\/Bloomberg via Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n<p>A confluence of data released last month showed that the housing market is already rapidly deteriorating: <a href=\"https:\/\/foxbusiness.com\/economy\/existing-home-sales-tumble-10-year-low-september-mortgage-rates-skyrocket\" target=\"_blank\" rel=\"noopener\"><u>Sales of existing <\/u><\/a><a href=\"https:\/\/foxbusiness.com\/economy\/existing-home-sales-drop-ninth-straight-month-october\" target=\"_blank\" rel=\"noopener\"><u>homes<\/u><\/a> tumbled in October for the ninth straight month; homebuilder sentiment fell to the lowest level since 2012 in November; and investor home purchases plunged 30%.\u00a0<\/p>\n<p>Many experts agree the housing market will worsen as the <a href=\"https:\/\/foxbusiness.com\/category\/the-fed\" target=\"_blank\" rel=\"noopener\"><u>Federal Reserve tightens policy<\/u><\/a> at the fastest pace in three decades in order to crush runaway inflation.\u00a0<\/p>\n<p><a href=\"https:\/\/foxbusiness.onelink.me\/Zkcx?pid=AppArticleLink&#038;af_dp=foxbusinesssaf%3A%2F%2F&#038;af_web_dp=https%3A%2F%2Fwww.foxbusiness.com%2Fapps-products\" target=\"_blank\" rel=\"noopener\"><strong><u>GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/u><\/strong><\/a><\/p>\n<p>Policymakers have voted to approve six consecutive interest rate increases this year, including four consecutive 75-basis-point hikes in June, July, September and November.<\/p>\n<p>The average rate for a <a href=\"https:\/\/foxbusiness.com\/category\/home-mortgage\" target=\"_blank\" rel=\"noopener\"><u>30-year fixed mortgage<\/u><\/a> fell to 6.33% this week, according to the latest data released last week from mortgage lender Freddie Mac. That is significantly higher than just one year ago when rates stood at 3.10%, although it&#8217;s down from a peak of 7.08%. \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Florida Rep. Kat Cammack and former Trump economic adviser Steve Moore discuss inflation and Arizona Sen. Kyrsten Sinema&#8217;s departure from the Democratic Party on &#8216;The Evening Edit.&#8217;<\/p>\n","protected":false},"author":1,"featured_media":1705466,"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":[3884,5458,4528,5966,9182,3819,5502],"class_list":["post-1775741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-americans","tag-bongino","tag-facing","tag-homes","tag-mortgages","tag-report","tag-worth"],"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\/1775741","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=1775741"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1775741\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1705466"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1775741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1775741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1775741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}