INTERNATIONAL-EQUITY
The Equityof American's have in their important asset-their homes-has drop into the lowest levels since the end of world war II. Homeowner's portion of equity slipped to 46.2% in the first quarter from revised 47.5% in previous quarter. That was the fifth quarter in a row below fifty percent mark.
The total dollar of equity also fell for the forth straight to 9.12 trilion from 9.52 trilion in the fourth quarter, while total American mortgage debt rose 10.6 trillion from 10.53 trillion.
A homeowner's equity is the market value of the property minus the mortgage debt. And homeowner's equity has declined steadily even as home value surged during the housing boom to a jump in cash-out refinancing, home equity loans and an increase in 100 percent financing.
Experts expect to decline further as falling home prices erode the value of Americans largest asset, dragging more homeowner's "upside down" on their mortgages.
At the end of March, nearly 8.5 million homeowner's had negative or no equity in their homes, representing more than 16 percent of all home owners with a mortgage, according to moody economy.
The total dollar of equity also fell for the forth straight to 9.12 trilion from 9.52 trilion in the fourth quarter, while total American mortgage debt rose 10.6 trillion from 10.53 trillion.
A homeowner's equity is the market value of the property minus the mortgage debt. And homeowner's equity has declined steadily even as home value surged during the housing boom to a jump in cash-out refinancing, home equity loans and an increase in 100 percent financing.
Experts expect to decline further as falling home prices erode the value of Americans largest asset, dragging more homeowner's "upside down" on their mortgages.
At the end of March, nearly 8.5 million homeowner's had negative or no equity in their homes, representing more than 16 percent of all home owners with a mortgage, according to moody economy.
