American home owners are seeing over a 10 percent rise in the equity of their homes. Chief Analyst for Stewart Title Dr. Ted Jones says low interest rates are one reason. "In Texas - average home equity is up $8,000. That's probably the same percentage as the national rate. And as a result we're seeing REALLLLLLLY LOW foreclosure rates." If you own your home - your equity has gone up so much that your loan actually looks smaller. He says with home values up more people are able to stay in their homes. "Freddie Mac released the 30 year conventional mortgage rate earlier this week averaged 2.67% ! We have NEVER seen it that low!"
He continues, "Twenty-eight per cent of homes in the U.S. have a home-to-loan ratio of less than 50%. In other words - their loan total is less than 50% of their home!" Jones says families may take advantage of the increase and buy something bigger...and retirees may cash out and buy something smaller and enjoy the extra cash. He predicts most will stay in their homes - and take advantage of the current low interest rates and re-negotiate their loan.
photo: Getty