Monday, June 13, 2011

Homeowner Rates...................YIKES!

A Federal Reserve report out yesterday says the typical homeowner has only 38% equity in their principal residence — close to a postwar low, and far below the decade-ago figure of 61%.
This puts a new spin on the vaunted “homeownership rate.” According to the Census Bureau, 66.4% of Americans “owned” their homes in the first quarter of this year — itself a 12-year low.
But look deeper...

Thus, the real “homeownership rate” — excluding people with negative equity — is 57.2%.
By contrast, two government-sponsored firms, Fannie Mae and Freddie Mac, “own” 90% of new mortgages issued in the U.S.

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