#1,466 - 270,000 homebuyers who bought in 2022 are underwater on their mortgage

12/16/22 • 11 min

About 270,000 homebuyers who bought during the red-hot housing market this year already owe more than their house is worth, a new analysis found.
Among the 450,000 underwater borrowers in the third quarter, nearly 60% had mortgages originated in the first nine months of 2022, found. That's about 1 in 12 homes purchased in 2022 with a mortgage, or 8%. Nearly 40% of homes bought this year have less than 10% of equity left to tap.
The figures reflect yet another fallout from rapidly rising mortgage rates this year, which have put pressure on housing values as month over month.
“Though the home price correction has slowed, it has still exposed a meaningful pocket of equity risk,” Ben Graboske, president of Black Knight data and analytics, said in a news statement. “Make no mistake: negative equity rates continue to run far below historical averages, but a clear bifurcation of risk has emerged between mortgaged homes purchased relatively recently versus those bought early in or before the pandemic.”

Support the show

🛍️ Merch - https://Store.ReasonableTV.com/

🌟 Go PREMIUM with Reasonable+ for uncensored access to our entire content library: https://ReasonableTV.com/

💬 JOIN our FREE Discord Community! Share stories, chat with fellow enthusiasts, and stay in the loop: https://discord.com/invite/uJGWFpgDcY

👍🏼 SMASH that LIKE button & SUBSCRIBE for daily videos that dive into the latest news! https://youtube.com/c/NewsForReasonablePeople

📲 Stay connected and never miss an update!
🔗 Rumble - https://rumble.com/c/NewsForReasonablePeople
🔗 Facebook - https://www.facebook.com/NewsForReasonablePeople
🔗 iTunes - https://apple.co/2MkFziJ
🔗 Spotify - https://spoti.fi/2Dh8EoL

Support the show

Previous Episode

#1,465 - Oregon DOT puts boulders along freeways to block homeless encampments

The loud bang of boulders dumped out of construction trucks was muffled Tuesday morning by the constant hum of the freeway. Along I-5 near Delta Park, Oregon Department of Transportation crews in place of homeless camps.
“Basically, it’s an aggressive landscaping technique,” explained Don Hamilton, ODOT’s public information officer.
They started using the tactic about four years ago and are bringing it back now that the weather is getting colder, and as more homeless camps pop up along the freeway.
“It’s kind of a last resort where we use these to try to make sure that the campers, the illegal campers are not on state property. This is especially dangerous in the winter when the roads can get slick and icy and cars can go spinning off the road,” said Hamilton. He said many homeless people have been killed by cars going off the road.

Support the show

Next Episode

#1,467 - Portland Police Raid illegal Shroom House Overnight

Police raided the West Burnside psychedelic mushroom shop Shroom House early morning, seizing evidence and arresting multiple people, and putting an end to one of the city’s biggest holiday-season attractions.
Shroom House has been operating since Oct. 24, violating federal and state laws governing the use of psychedelic mushrooms in Oregon. That hasn’t deterred Portlanders, who lined up for over six hours on many days this month to purchase psychoactive fungi. A small queue formed this morning in the pouring rain before being told by a reporter that the store had been raided.
Portland Police Bureau spokesman Sgt. Kevin Allen confirmed the raid to WW early this morning.
The shop’s likely owner, 32-year-old Steven Tony Tachie Jr., was booked in jail at 4:19 am this morning on charges of money laundering and manufacturing or delivering a Schedule I controlled substance near a school. Police also arrested Jeremiahs Francis Geronimo, 32, and booked him on similar charges.
Victor B. Fabela, 25, and Ivan Mametyev, 38, were issued criminal citations for delivery of psilocybin, Portland police said. More than $13,000 in cash and “a large amount of suspected psilocybin products,” were seized during the 1 am raid by officers with the bureau’s Narcotics and Organized Crime Unit.
Two senior prosecutors with the Multnomah County District Attorney’s Office assisted with the raid, an office spokeswoman said.

Support the show