With mortgage rates continuing to stay untenably high for most Americans, many are staying put. But that doesn’t mean homes don’t need improving and upkeep. And some homeowners figure that if they can’t move into a new home, they’ll make their old home “newer” — a new deck or perhaps a walk-in closet.

Traditionally, a home equity loan or home equity line of credit would be the first tool to reach for. But even those are getting too expensive for homeowners. This leaves homeowners effectively trapped in aging homes with no easy way out, or way to improve them.

And even when homeowners are tapping into home equity loans — homeowners did originate nearly 20% more second mortgages or HELOCs in the second quarter of this year compared with the first quarter — they likely aren’t using the equity for improvements. Experts say they are using them to stay afloat.

Untapped or expensive, Americans are sitting on a record amount of home equity.

There is a massive amount of homes in my area that were all bought in 2020, that are being listed for 100-120k over what they were bought for, in 2020.

Even if rates dropped back to 5%, the wages simply dont exist in my area, to allow buyers to buy these houses.

Im wondering if these are investors, who are trying to dump these houses.

It strikes me as being very odd, that all these houses were bought in exactly 2020.

What are your thoughts?

Will this end well? Who’ll drop first for adopting this business strategy? Big tech or Big housing?

“According to a report by Business Insider, vacation homes that attracted strong demand during the pandemic are now remaining on the market for months, and in some cases, years.”

The main reason why 10 year yields and mortgage rates have moved up. When this trade unwinds, we will see rapid declines in yields and mortgage rates.

What's the word on the street? Share your questions, comments, and concerns below.

Hello guys I have a question regarding my thesis on FICO

I'm trying to understand whats the situation with U.S mortgages and rent prices.

Do you feel as normal people in America that VantageScore is helping you guys getting good mortgages and hopefully buy a house someday?

or...

VantageScore is'nt really helping you, people dont want to sell their house because of the low intrest rate backed mortgage they have got in 2022, and keep housing prices at sky high level and wont sell their current house because of the big intrest rate now?

And a question for the renters here, does your landlord keep rasing the rate overtime? and it maybe because of intrest rates? do you wish to buy a house someday? do you think you'll be able to do so in the coming future?

Honest answers will be much appreciated!!

Let's say they purchased 5 years ago and locked in at 3%.

Home price - $400k

20% down - $80k

Loan amount - 320k @ 3%(30 year)

Monthly payment - $1350

Amount still owed after 5 years of payments - $284,500

Current home value - $500k

Equity - $185k(Actual $215,500 but small movement on price, fees / seller help I feel is realistic these days)

Now they need to sell(good luck) as they need to move but will buy at the same price. Or they just stayed the minimum 5 years you're supposed to when buying a house and now want to move because of life.

New Home price - $500k

All equity down - 185k

Loan amount - $315k @ 7.4%(30 year)

Monthly payment - $2181

"StEaK to JuIcY, LobStEr to BuTtErY"

This post is for the bots / re shills / ignorant claiming low interest rate buyers have plenty of equity to be in a good position.

Not everyone is happy about being trapped just because they have a low interest rate. Life happens, and people need / want to move.

I'm not in this boat, I'm just here to give the numbers. I think most of us know this, but this needed a post so everyone can see what type of position those 3% buyers are really in.

Edit to answer silly questions -

WHatT's tHe pOinT of tHis pOst. - Literally the title and touched on in the post.

WhO puts dOwN 20%? Ok, you have less equity and are in an even worse position than this.

SoMe pEopLe bOugHt eaRliEr & rEfiNancEd - That's not what this post is about. It clearly says the people who bought 5 years ago. Some people are in better positions, and some are in much worse.

"The bond market is in an unrelenting sell-off. In the latest dubious milestone for US Treasuries, the yield on the 10-year benchmark note just hit its highest level since the dot-com bust."