Rising Home Equity Has Given U.S. Homeowners a ‘Solid Financial Cushion’

The average U.S. mortgage borrower saw a historic high increase in home equity of about $24,000 year over year in the fourth quarter. The number of homeowners underwater on their mortgages decreased by 15%. Homeowners in Rhode Island, New Jersey, and Massachusetts experienced equity gains of over $50,000. Nationwide, homeowners with mortgages saw an 8.6% increase in home equity, totaling $1.3 trillion. Texas was the only state with a home equity loss. Miami led in annual equity gains, with homeowners benefiting from a solid financial cushion.