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FBN’s Liz MacDonald with news that more homeowners are paying down their mortgages and increasing their home equity..
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Paying off their mortgages so what's this mean for the -- market and the overall economy the McDonald's here with Mac's bottom line.
-- -- -- You know the bottom line it is to get things that's a great for consumer spending -- -- and expect.
We just talking a housing analyst at Wells Fargo and he was saying -- -- -- let them watch like watching paint dry.
Configure we're going to be seeing a bottom in housing but any time we see.
Home equity going up that's a good thing it means people feel better about their network it's now at 41% and here's why.
Take a look at the average thirty year fixed rate mortgage rates -- gonna -- three point 65%.
Still a little bit -- higher in the western states.
But you know the national average is up three point 67% and on an unheard of two point 9% for fifteen years -- that's what's going on.
People are seeing lower rates in their refi like never report Freddie Mac telling Fox Business outlook.
You know half of the eight drop in balances of mortgages is due to people refinancing.
He's also due to the fact that you -- every five unless you pay down because you've lost so much equity in your -- not having -- or sell off.
You know with an order for need to go and refinance they want me to pay down -- -- -- -- Yeah in order to get that's you know that's spread at 8020 spread -- yet so right that could be part of the reason why people are paying these things down to right.
And that could be why add up -- something that prices are down.
Our arc of course as you know dramatically and Federal Reserve has it down 23% case Shiller says what 35% from -- -- peak.
But you know is what we're seeing too is that banks are getting religion about doing more short sales and CC for closures also ticking up.
And those kinds of moves up from April to -- by 9%.
But the thing of it is you know it's not so much like watching crab grass growing at war with the action enhancing when -- -- data like this coming through it's a positive sign maybe not for consumer spending by the people feel better that they've got more equity -- I'm saying right that's the bottom line that's a good thing.
That's -- but a lot of -- days Elizabeth MacDonald thank.
