Borrowers have a record $11 trillion in tappable equity
Borrowers have a record $11 trillion in tappable equity
Abstract
Escalating home prices delivered a record gain of $1.2 trillion in tappable equity to borrowers in the first quarter of the year, Black Knight reports. Mortgage holders are enjoying a total of $11 trillion in tappable equity, or $207K per borrower, also the highest on record, according to the Black Knight Mortgage Monitor report for April. Home price deceleration in April was likely a reflection of modest rate increases at the beginning of this year, Black Knight said, and the recent 5% threshold crossing could reflect on upcoming sales indexes. Refinances continued their slide in April and were down 54% over the past 12 months, led by an 80% annual freefall in rate/term refis, the report said. In total, mortgage holders withdrew more than $75 billion in equity via cash-out refis, the highest such volume in 15 years, according to Black Knight. Borrowers in dire straits also improved their position as the national delinquency rate fell 1.3% to a record-low 2.8% in April, the report said. Delinquencies 30-to-60 days behind on payments increased 8% but serious delinquencies 90 days or more past due fell 7.8%.The number of forbearances fell by nearly 37,000 in April but as of mid May 645,000, or 1.2% of all mortgages remained in active forbearance, according to Black Knight.