Chicago, IL (PRWEB) February 27, 2013
Homeowners across the country were freed from negative equity in 2012. According to the Zillow Negative Equity Report, almost 2 million homeowners escaped underwater situations throughout the year. The Federal Savings Bank sees this as a sign that the housing market continues to improve.
Negative equity fell to 27.5 percent, compared to 31.1 percent a year ago. The Zillow Negative Equity Forecast for this quarter predicts the rate to fall to at least 25.5 percent by the fourth quarter of 2013. If the forecast is correct, more than 999,000 homeowners could escape negative equity by the end of the year.
According to the report, increased home values and high foreclosure rates were the main drivers for the drop in negative equity last year. The Federal Savings Bank is seeing more a larger amount of mortgage applications as home values rise, why? As more homes rise in value, homeowners have greater flexibility to sell increasing activity in the housing market. The housing market is bound to get more active as more inventory makes its way onto the market. In addition, more potential homeowners are see how much of a property they can afford while taking advantage of decade low interest rates . The bank notes that while home however, that while prices are rising
For those Americans who are still underwater on their mortgage with negative equity, the Federal Savings Bank encourages them to discover the benefits of refinancing. Many lien holders have used the Home Affordable Refinance Program as its number of participants has now jumped to over 2 million. Refinancing a mortgage allows homeowners to restructure their payments to make monthly bills more manageable. Homeowners should consider this option if underwater on the mortgage because no matter where they live mortage rates are low across all states. To read more about refinancing benefits please visit: TheFederalSavingsBank.com