AgentIndustry News

Homeowners may be unwittingly sitting on key to next purchase

Fannie Mae survey finds as many as 15 million homeowners underestimate their equity despite rising home values

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Enjoy the Connect experience from your computer, laptop or tablet! Watch Connect now. Takeaways: Many borrowers have a "negative perception gap" that's suppressing housing and mortgage market activity. At the end of last year, 37 percent of homeowners perceived that they had more than 20 percent home equity, but CoreLogic estimated that 69 percent actually had significant equity. The appreciation gap presents an opportunity to remove a barrier to continued recovery in the housing and mortgage markets. Many homeowners do not fully understand how much equity they have in their homes, making them reluctant to consider purchasing another home, according to Fannie Mae’s recent National Housing Survey (NHS). According to the NHS, many borrowers have a “negative perception gap” or “appreciation gap” that is suppressing housing and mortgage market activity. These borrowers are also likely to underestimate how large a down payment they can make with their h...