8% of 2022 Mortgaged Home Purchases Now Underwater; Payment Defaults Rise – IOTW Report

8% of 2022 Mortgaged Home Purchases Now Underwater; Payment Defaults Rise

Black Knight:

  • Black Knight’s HPI showed that while home prices continued to pull back in October, the month’s 0.43% decline (a seasonally adjusted 0.13% decrease) was the smallest seen since prices peaked in June
  • Annualized appreciation slowed to 9.3% from September’s 10.7%, marking the seventh consecutive month of cooling, but the smallest such decline since May
  • New for-sale listings in October were 19% (-94K) below 2017-2019 levels, marking the largest deficit in six years – outside of March and April 2020 when much of the country was in lockdown
  • Three months of stalled inventory growth is softening downward pressure on home prices from home affordability that still remains near 35-year lows
  • Despite the slowdown in price corrections, equity risk among 2022 purchase mortgages persists, while risk remains minimal among those who bought 12 or more months ago
  • Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater and nearly 40% have less than 10% equity stakes in their home, a situation most concentrated among FHA/VA loans
  • Overall, at just 0.84%, negative equity rates among all mortgaged properties remain extremely low by historical standards
  • More than 25% of 2022 FHA/VA purchase mortgage holders have now dipped into negative equity, with 80% having less than 10% equity
  • Early-payment defaults – loans delinquent within six months of origination – have been rising among FHA borrowers over the past year and now sit above pre-pandemic levels

JACKSONVILLE, Fla. – Dec. 5, 2022 – Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based on the company’s industry-leading mortgage, real estate and public records datasets. Despite home price corrections continuing in many markets nationwide driven by tight affordability and higher rates, the pace of price declines has slowed measurably over the past two months. As Black Knight Data & Analytics President Ben Graboske explains, what would ordinarily be an environment ripe for steep declines in home prices has been offset somewhat by stagnant levels of for-sale inventory. more

13 Comments on 8% of 2022 Mortgaged Home Purchases Now Underwater; Payment Defaults Rise

  1. Fuck Em!

    Live within your means Tic Toc-ers, Social infuencers, & Imbeciles.

    I do, and I’ve been working steady since I was 16 years old, and 6 days a week since the SCAM-DEMIC.

    My personal vehicle is a 2014 Subaru Legacy Base model but I KILLED my mortgage in 1994.

    7
  2. Understand what they are saying

    Despite Corrections, Tight Affordability
    Higher Rates, Price Declines
    Steep Decline, Stagnant Inventory
    Annualized Appreciation

    Bottom Line: It’s a Buyers Merket
    Buy Buy Buy
    Rates have never been lower
    They want your Money

    Buy One McMansion, Full Bankers Rate
    Get One minimcMansion Free for investing and taxes

  3. Everyone of them will be bailed out by the Federal Government prior to the next election as sponsored by Democrats and paid for by you, taxpayer.

    I have been paying my mortgage for 24 years and have 3 payments (refinanced in 2014 to add an addition) left. Just in time for us to begin thinking about a tiny house in Florida away from the tourists areas.

    This is not my government’s bidness nor should it interest them but the demmies want it to house welfare illegals in it. Saw a bus load of illegals parked at a warehouse complex today just south of my house. Started the community phone reminding everyone to be careful about their kids, doors, cars, and stores.

    Point is this: all of those illegals will end up in these repossessed homes and the originals who can no longer afford them will be in FEMA camps guarded by UN troops.

    4
  4. I close next week on the home my parents left to me. I worry about the young family buying it because of where Biden and the Commiecrats are taking the country. I wish them well, but they have a real struggle ahead of them. I hope they make it.

    3
  5. Dr. Hambone,

    We wanted to own something & have our tiny piece of something ours.

    Many young people are happy to live in a virtual world where they are Wizards, influencers & super heros.

    They won’t notice shit nor care. (unless the inter webby thing goes down)

    cheers.

    2
  6. @Kcir
    I hate to sell the place as it has wooded land with plenty of game, wonderful well water and good rich soil to grow things in. It’s where you can blast bad guys and the sheriff will thank you for it. Alas, it’s too much to maintain for a guy like me who is getting up there in age. I can’t tell you how many deer I have killed there over the years, but I believe I shot my last deer there on December 5th. Going miss that a lot. Fresh venison is good.

  7. Black Knight’s HPI showed that while home prices continued to pull back in October, the month’s 0.43% decline (a seasonally adjusted 0.13% decrease) was the smallest seen since prices peaked in June
    Annualized appreciation slowed to 9.3% from September’s 10.7%, marking the seventh consecutive month of cooling, but the smallest such decline since May
    New for-sale listings in October were 19% (-94K) below 2017-2019 levels, marking the largest deficit in six years – outside of March and April 2020 when much of the country was in lockdown
    Three months of stalled inventory growth is softening downward pressure on home prices from home affordability that still remains near 35-year lows
    Despite the slowdown in price corrections, equity risk among 2022 purchase mortgages persists, while risk remains minimal among those who bought 12 or more months ago
    Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater and nearly 40% have less than 10% equity stakes in their home, a situation most concentrated among FHA/VA loans
    Overall, at just 0.84%, negative equity rates among all mortgaged properties remain extremely low by historical standards
    More than 25% of 2022 FHA/VA purchase mortgage holders have now dipped into negative equity, with 80% having less than 10% equity
    Early-payment defaults – loans delinquent within six months of origination – have been rising among FHA borrowers over the past year and now sit above pre-pandemic levels
    JACKSONVILLE, Fla. – Dec. 5, 2022 – Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based on the company’s industry-leading mortgage, real estate and public records datasets. Despite home price corrections continuing in many markets nationwide driven by tight affordability and higher rates, the pace of price declines has slowed measurably over the past two months. As Black Knight Data & Analytics President Ben Graboske explains, what would ordinarily be an environment ripe for steep declines in home prices has been offset somewhat by stagnant levels of for-sale inventory. more

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