Illinois experienced the largest decrease, down by 3.3 percentage points from Q1 2015 to Q2 2015.
Chicago, IL (PRWEB) September 18, 2015
The Federal Savings Bank was pleased to read the data presented in a recent September 15th Corelogic article titled “Dollar Volume of Negative Equity Decreased by $29 Billion from Q1 2015 to Q2 2015.”
Nationally, “Quarter over quarter, 43 states exhibited decreases in the negative equity share in Q2 2015.” The Federal Savings Bank, an institution based in Chicago, Illinois, took pride in hearing that “Illinois experienced the largest decrease, down by 3.3 percentage points from Q1 2015 to Q2 2015.” However, there remains plenty of room for improvement in Chicago since the city was noted second to New York for having the second highest total of underwater dollars at $15 billion.” New York had $15.3 billion followed by Los Angeles at $8.6 billion.
The decline in quarter over quarter negative equity has big positive implications for home prices. Prices are already on an uptrend thanks a national unemployment rate of just 5.1%, as reported by the Bureau of Labor Statistics for August 2015. More Americans can afford homes, which has already been pushing home prices higher. In addition, the lower number of foreclosure properties for sale is also forcing buyers to look at higher priced homes, which is further causing equity prices to rise.
The Federal Savings Bank thinks this winter will be critical for many first-time home buyers to make a great property purchase before a Spring 2016 housing market could really accelerate home prices higher. Prospective buyers should also keep in mind that as negative equity falls, home prices will climb, and mortgage rates may follow.
Currently, 30-year fixed mortgage rates are trending around 4%, a very low historical rate. Prospective buyers, especially young first-time home buyers, should take advantage of this rate since it makes a home loan + property taxes much more affordable than paying for rent!
First-time home buyers should contact The Federal Savings Bank, a veteran owned bank, to learn more about their affordable mortgages.