Evidently, homeowner's equity has decreased below 50% for the first time on record--since the Fed started tracking it in 1945. Part of this is falling markets, but I'd suspect another part is that the old ethic of "pay off your debts" is going by the wayside.
And our economy is paying for it in a big way, sad to say.
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17 hours ago
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along with all the re-fi's, there was also cashing in going on. folks paying off their car loans, consumer debt,etc...and tacking it onto the house payment.
now, we have foreclosures.
it works for me.
i'm in the market for bargain home right now.
Considering how much(little) equity the typical recent homeowner has, I think that this is a non-story.
How would we know how little equity the typical recent homeowner has if we didn't have stories about it? You're right that it's not surprising, but I'm not quite sure I can go as far as to say it's a "non-story."
Well, it is only a story because a lot of people, supposedly, have re-fied or taken equity loans or are paying "interest only."
If they were being responsible or better, they would probably have paid enough principal so that the loss would be 20-33%...
If someone (like my lost brother) had gotten totally upside down, would we say that he's lost 400% of his equity?
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