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Home equity grew by $2 trillion in the first quarter

June 10, 2021. Summarized by summa-bot.

Compression ratio: 42.5%. 1 min read.

WASHINGTON, DC - JUNE 07: Houses are seen In the Edgewood neighborhood in Washington, DC, on June 07, 2021. (Photo by Craig Hudson for The Washington Post via Getty Images)

Home prices have been on a tear this year, hitting record highs and pushing up homeowners' wealth.

Home prices have been on a tear this year, hitting record highs and pushing up homeowners' wealth.

Home equity -- the difference between the value of your home and how much you owe on your mortgage -- rose by nearly 20% in the first part of this year from last year, according to CoreLogic.

Homeowners with mortgages -- about 62% of properties -- saw an equity gain of nearly $2 trillion nationally from last year, which is an average gain of $33,400 per borrower.

That's led to an increase in the average amount of equity held by homeowners with a mortgage, said Frank Nothaft, chief economist for CoreLogic, which is now $216,000 over the life of their loan.

The increase in equity is particularly important for the 2. 12 million homeowners who fell behind on their mortgage and are still in forbearance programs with their lender, which allowed them to delay or defer payments, according to Black Knight.

by summa-bot

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