{"id":6673,"date":"2023-06-08T10:33:00","date_gmt":"2023-06-08T10:33:00","guid":{"rendered":"https:\/\/twolakeshomes.com\/this-real-estate-market-is-the-strongest-of-our-lifetime\/"},"modified":"2023-06-08T10:33:00","modified_gmt":"2023-06-08T10:33:00","slug":"this-real-estate-market-is-the-strongest-of-our-lifetime","status":"publish","type":"post","link":"https:\/\/twolakeshomes.com\/2023\/06\/this-real-estate-market-is-the-strongest-of-our-lifetime\/","title":{"rendered":"This Real Estate Market Is the Strongest of Our Lifetime"},"content":{"rendered":"
When you look at the numbers today, the one thing that stands out is the strength of this housing market. We can see this is one of the most foundationally strong housing markets of our lifetime \u2013 if not the<\/em> strongest housing market of our lifetime. Here are two fundamentals that prove this point.\u00a0<\/p>\n First, let\u2019s look at the current rate on existing mortgages. According to the Federal Housing Finance Agency<\/em> (FHFA<\/a>), as of the fourth quarter of last year, over 80% of existing mortgages have a rate below 5%. That\u2019s significant. And, to take that one step further, over 50% of mortgages have a rate below 4% (see graph below<\/em>):<\/p>\n <\/a><\/p>\n Now, there\u2019s a lot of talk in the media about a potential foreclosure<\/a> crisis or a rise of homeowners defaulting on their loans, but consider this. Homeowners with such good mortgage rates are going to work as hard as they can to keep that mortgage and stay in their homes. That\u2019s because they can’t go out and buy another house, or even rent an apartment, and pay what they do today. Their current mortgage payment is more affordable. Even if they downsize<\/a>, with today\u2019s higher mortgage rates, it could cost more.<\/p>\n Here’s why this gives the housing market such a solid foundation today. <\/span>Having so many homeowners with such low mortgage rates helps us avoid a crisis with a flood of foreclosures coming to market like there was back in 2008.<\/p>\n Second, Americans are sitting on tremendous equity right now. According to the Census<\/em><\/a> <\/em>and ATTOM<\/em><\/a>, roughly two-thirds (around 68%) of homeowners have either paid off their mortgage or have at least 50% equity (see chart below<\/em>):<\/p>\n1. The Current Mortgage Rate on Existing Mortgages<\/strong><\/h4>\n
2. The Amount of Homeowner Equity<\/strong><\/h4>\n