Reblogged from: MBA NewsLink – Mike Sorohan
Tepid growth in personal income and wealth has been widely regarded as one factor weighing down a more robust housing market recovery. Research from Fannie Mae suggests another factor might be in play.
The company’s latest National Housing Survey said homeowners may be underestimating their home equity. In particular, said authors Steve Deggendorf and James Wilcox, if homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes and buying different homes.
“A substantial group of homeowners may not recognize how much the values of their homes rose after 2011,” the report said. “And, even if they recognized that their homes’ values had increased, many homeowners may underestimate how much their homes’ values and home equity increased.”
>> Read More: http://apps.mba.org/tools/FullStory.aspx?ArticleId=59700
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