Record $29.2 Trillion For U.S. Home Values

The Federal Reserve’s Flow of Funds report delivered good news for the beginning of 2020 for the housing industry. The value of all U.S. owner-occupied homes increased to a record $29.2 trillion in the third quarter.

The report also shows that the total of home values for all U.S. residential real estate was $32.9 trillion. The report’s findings are based on both unoccupied or occupied homes. The overall value of homes in the U.S. is 21% higher than the boom in 2006. Fannie Mae reported a 5.2% increase in home prices in 2019 from the previous year’s report.

Not only did home values rise but so did homeowner equity (the worth of a home compared to its mortgage). The report shows a 64% equity stake currently which is up from the 2017 Fed report showing a 62.5% equity stake.

The gain in home values is also supported by lower mortgage rates. Those looking to purchase a home can qualify for higher-balance mortgages and can have a better selection of homes to make offers on. These low mortgage rates stem from the worry from the fallout from trade wars.

Mortgage rates are holding at 3.72% for a 30-year fixed mortgage compared to 4.51% this time last year.

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