CoreLogic: Borrower Equity Rises By $590 Billion Year-Over-Year – NMP Skip to main content

CoreLogic: Borrower Equity Rises By $590 Billion Year-Over-Year

Jun 15, 2020
Photo credit: Getty Images/Kuzma

CoreLogic’s Home Equity Report for the first quarter of 2020 shows that U.S. homeowners with mortgages (which account for roughly 63% of all properties) have seen their equity increase by 6.5% year-over-year, representing a gain of $590 billion since the first quarter of 2019.
 
In the latter half of the first quarter of 2020, COVID-19 began to spread across the country, with immediate economic impact not fully realized until the end of March. As the pandemic continued to unfold and shelter-in-place orders were extended, unemployment reached double digits within a few short weeks and left many homeowners scrambling to cover mortgage payments. However, home prices continued to rise, which added to borrower equity through March.
 
Negative equity, also referred to as underwater or upside down, applies to borrowers who owe more on their mortgages than their homes are worth. From the fourth quarter of 2019 to the first quarter of 2020, the total number of mortgaged homes in negative equity decreased by 3.1% to 1.8 million homes or 3.4% of all mortgaged properties. The number of mortgaged properties in negative equity in the first quarter of 2020 fell by 16%, compared to the first quarter of 2019, when 2.2 million homes, or 4.1% of all mortgaged properties, were in negative equity. Because home equity is affected by home price changes, the number of borrowers with equity positions near (+/-5%) the negative equity cutoff is most likely to move out of or into negative equity as prices change. Looking at the first quarter of 2020 book of mortgages, if home prices increase by 5%, 310,000 homes would regain equity, and if home prices decline by 5%, 420,000 would fall underwater.
 
Homeowners gained an average of $9,300 in home equity between the first quarter of 2019 and the first quarter of 2020. States with the largest gains include Idaho, where homeowners gained an average of $24,400, Washington, where homeowners gained an average of $20,800 and Arizona, where homeowners gained an average of $19,900.
 
“The pandemic recession will likely lead to price declines in many areas during the next year and weaken home equity gains,” said Dr. Frank Nothaft, chief economist for CoreLogic. “However, price declines will be far less than those experienced during the Great Recession, when the national CoreLogic Home Price Index fell 33% peak-to-trough. Our latest forecast shows the national index to have a peak-to-trough decline of 1.5%.”
CoreLogic’s Home Equity Report for the first quarter of 2020 shows that U.S. homeowners with mortgages (which account for roughly 63% of all properties) have seen their equity increase by 6.5% year-over-year

 
About the author
Published
Jun 15, 2020
CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Sep 23, 2026
Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Sep 23, 2026
Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

Sep 23, 2026
Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Sep 22, 2026
Fed Hike Raises HELOC Costs While Mortgage Rates Stay Near 7%

Prime rose to 7% while the 10-year Treasury remained near 5%, giving originators two different borrower conversations

Sep 17, 2026