U.S. households own $41 trillion in owner-occupied real estate, just over $12 trillion in debt, and the remaining ~$29 trillion in equity. The national "LTV" in Q2 2022 was 29.5%, the lowest since 1983.
Odeta Kushi
5,213 posts
Odeta Kushi
@odetakushi
Deputy Chief Economist @firstam | Real Estate & Housing Finance | Data + Econ + Housing | Co-host of REconomy Podcast | Albanian-American | Views are my own
- The cost of renting is simply the amount of rent paid every month (blue line). The monthly cost of owning a home includes taxes, repairs, homeowner’s insurance, and the monthly mortgage principal and interest payments (orange line). The green line shows the monthly cost to own
- Apartment rents are already declining in many cities, and those with more construction underway that lack the demand to absorb new deliveries will see rents fall further in 2024. The pandemic, which drove geographic shifts in the demand for apartments, as well as the low interest
- We talk a lot about homeowners being rate-locked into their homes as rates have increased. It's true that 93% of outstanding mortgages were locked in below 6% as of Q2 2022. But 42% of owned homes have no mortgage associated with them, making them immune from the lock-in effect.
- Today’s housing market isn’t anything like the housing market of the mid-2000s – the housing market today is not overbuilt, nor is it driven by loose lending standards, sub-prime mortgages, or homeowners who are highly leveraged. However, the current housing market is similar to
- Pending home sales declined 7.7% compared to last month, and are down 7.4% compared to one year ago. Why does this matter? Pending sales are a forward-looking indicator of home sales based on contract signings. April's data is a sign of weakening demand. Mortgage rates
- A common misnomer regarding the millennial generation once was that they were destined to be a generation of renters. However, millennials are not only interested in homeownership but, as of 2022, the majority of millennials—51%—are homeowners. blog.firstam.com/economics/mill…
- The bigger picture is that shelter is a basic human necessity. The housing market has been underbuilt relative to demand for more than a decade. What we need in the U.S. is to build more housing of all types, rented or owned.
- According to the NMDB Q3 2022 data: ~24% of mortgaged homes have a rate <=3% ~63% have a rate <=4% ~84% have a rate <=5% ~93% have a rate <=6% ~7% have a rate >6%
- 85% of outstanding mortgages as of Q1 2022 were locked in at <=5%, rates, 65% at <=4% & 24% at <=3%. The chart below shows the share of outstanding mortgage locked in <=4% by state. New listings in the week ending 9/13 were down 18% YoY. The golden handcuffs of low mtg rates.
- With all due respect, @USAmbKosovo: say something, DO something. Why are we appeasing Serbia? Serbia received backing from Russia and China to continue its provocations. Why is the U.S. supporting those regimes in the Balkans that are least committed to democratic values?Three #Kosova border police officers are kidnapped today inside 🇽🇰 territory by 🇷🇸 gendarmerie. This is an extension of violent interference of 🇷🇸 in 🇽🇰 after events in the north. Only aggressor in these violent event resides in Belgrade & Int’l community should react accordingly
- Will result in more pullback in demand. House price growth moderation requires a rebalancing of supply relative to demans. Higher rates will do that. But ~90% of inventory is existing homes & existing owners have golden handcuffs. They’re rate locked in.No joke the mortgage rate just hit 6.28% today. Beyond words to express at this point!
- From 2000 up until the pandemic, new homes on average made up ~11% of total inventory. Today, that share is 29% as existing owners are staying put & new home inventory rises. Please note that the new home inventory number includes inventory at all stages of construction... (1/2).
- The first ever birthday I celebrated in the U.S., my parents pointed to the local firework display and told me that it was for me. Today I turn 30 and I know better. But the magic of sharing a birthday with America has never faded. Happy birthday, America 🇺🇸
