Homeowners See Home Equity Fall in the US

The video discusses the decline in home equity for US homeowners, noting a $5,400 average loss in the first quarter. Despite this, current equity levels remain higher than pre-pandemic figures. Regional differences are highlighted, with Western states experiencing larger declines, while Florida maintains strong growth. The discussion also covers the potential impact of a recession on home equity, comparing current conditions to the Great Recession. Finally, the video explores how low mortgage rates affect housing inventory and the conditions needed for market normalization.

What was the average decline in home equity for US mortgage holders in the first quarter compared to the previous year?

• $7,500

• $3,200

• $10,000

• $5,400

How much has the average home equity increased since before the pandemic?

• $150,000

• $100,000

• $200,000

• $50,000

What does the recent home price index data suggest about the trend in home prices?

• Home prices are stable

• Home prices are fluctuating

• Home prices are decreasing

• Home prices are increasing

Which state has shown resilience in home price growth compared to western states?

• Florida

• New York

• Texas

• California

What is a significant factor contributing to the decline in home prices in western states?

• Increased supply

• Government regulations

• Low demand

• High mortgage rates

During the Great Recession, what percentage of homeowners went into negative equity?

• 26%

• 10%

• 5%

• 15%

What mortgage rate do people perceive as a threshold to give up their low rates?

• 7%

• 6%

• 5.5%

• 4%