Black Knight: May Sees Least Affordable Housing Market in 16 Years While Existing Mortgage Holders Gain Record $1.2 Trillion in Tappable Equity in Q1 2022
Black Knight, Inc. (NYSE:BKI) reports a significant rise in U.S. home prices, up 42% since the pandemic began, with 19.9% annual growth as of April 2022. Affordability has worsened, with the monthly principal and interest payment increasing by 44% since the start of the year, nearing levels last seen in July 2006. Despite challenges for homebuyers, current mortgage holders gained $2.8 trillion in tappable equity over the past year, averaging over $207,000 per borrower. Active listings remain low, 67% below pre-pandemic levels, exacerbating the affordability crisis.
- Mortgage holders gained $2.8 trillion in tappable equity over the past year, averaging $207,000 per borrower.
- First quarter of 2022 saw a record $1.2 trillion increase in tappable equity, marking the largest quarterly growth ever.
- Monthly principal and interest payment on average homes has surged nearly $600 this year, worsening affordability.
- Home price growth is making the market the least affordable since 2006, approaching record low affordability ratios.
- U.S. home prices are up
42% since the start of the pandemic, with the average home having gained almost9% in value just since the start of 2022 - Though the annual rate of appreciation cooled slightly (
19.9% in April vs. an upwardly revised20.4% for March), rising home prices and interest rates have made for the worst affordability since July 2006 - The monthly principal and interest (P&I) payment on the average-priced home with
20% down is nearly$600 (+44% ) more than it was at the start of the year and$865 (+79% ) more than before the pandemic - As of May 19, with 30-year mortgage rates at
5.25% , the share of median income required to make that P&I payment had climbed to33.7% , just shy of the34.1% high reached in July 2006 - While tightening affordability is hampering prospective homebuyers, the home price growth at the root of the issue continues to increase the housing wealth of current homeowners with mortgages
- U.S. mortgage holders saw their collective tappable equity – the amount available to borrow against while retaining at least a
20% equity stake in the home – increase by$1.2 trillion in Q1 2022 alone - In total, mortgage holders gained
$2.8 trillion in tappable equity over the past 12 months – a34% increase that equates to more than$207,000 in equity available per borrower
JACKSONVILLE, Fla., June 6, 2022 /PRNewswire/ -- Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based upon the company's industry-leading mortgage, real estate and public records datasets. While rising home prices and volatile interest rates continue to compound the affordability pressures in the housing market, the same dynamics have also served to increase the housing wealth of American mortgage holders by a significant margin. According to Black Knight Data & Analytics President Ben Graboske, tappable equity – the amount available for mortgage holders to borrow against while retaining a
"Home price growth cooled – albeit very slightly – in April," said Graboske. "While a downward shift from
"There's another side to this story, though; one of significant equity growth among current homeowners. With the average-priced home up
The Mortgage Monitor also looked at another key contributing factor to home prices and affordability – record-low for-sale inventories. Despite seeing a rise of 27,500 from March to April, active listings remain
The continued lack of supply continues to weigh on home sales and keep prices higher than they might otherwise be given current affordability metrics. In recent years, a
The Data & Analytics division of Black Knight manages the nation's leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The combined insight of the Black Knight HPI and Collateral Analytics' home price and real estate data provides one of the most complete, accurate and timely measures of home prices available, covering
Black Knight's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor Report. To review the full report, visit: https://www.blackknightinc.com/data-reports/
Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serving their customers. For more information on Black Knight, please visit www.blackknightinc.com/.
For more information:
Michelle Kersch
904.854.5043
michelle.kersch@bkfs.com
Mitch Cohen
704.890.8158
mitch.cohen@bkfs.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/black-knight-may-sees-least-affordable-housing-market-in-16-years-while-existing-mortgage-holders-gain-record-1-2-trillion-in-tappable-equity-in-q1-2022--301560951.html
SOURCE Black Knight, Inc.
FAQ
What is the current state of U.S. home prices as of May 2022 according to Black Knight (BKI)?
How much has tappable equity increased for mortgage holders in Q1 2022 as reported by Black Knight (BKI)?
What is the impact of rising home prices on affordability in the U.S. housing market?