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American Household Equities Still Healthy at about $7 Trillion

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By : Rudson Tren    99 or more times read
The US Federal Reserve has recently released information that could be considered optimistic despite the intense housing industry condition. According to the agency, up to a hundred million American households today have about $6.96 trillion worth of home equity that remains even after the difficult period of the so-called Great Housing Industry Crash, which has been in effect since 2007.

According to the same data release, about 20 million American homes currently hold a net worth of more than $350,000 in equity. Experts from the agency are quick to assert that if homeowners continue to pay off as their mortgage debt continues, it would be logical that the total home equity figures could continue to rise. It would be an even healthier trend for the industry.

Some skeptics may be asking: are there still enough homeowners out there who are qualified to apply for and take mortgages to buy new or existing homes? Market observers are positive that there are. They emphasize that in the recent months, there have been clear indications that consumers are bent and determined on paying their respective and outstanding bills on time. It should be noted that most consumers are trying their best not to fall to defaults, because they know delayed payments would incur penalty charges and would affect their credit scores.

Many analysts are optimistic about the current trend in the nationwide housing market. They underline the observation that consumers are trying hard and succeeding to cope with the current housing market and economic condition. Housing prices are struggling, but demand remains strong.
Observers have been skeptical when it comes to their perceptions of the market for quite some time now. As many issues abound regarding volatile mortgage loans, rising foreclosures, and increasing number of underwater home loans (mortgages wherein loan amounts get much bigger than the actual cost of homes used as collaterals), it could be logical to expect negative and more disappointing news.

While many market observers think that all American households have negative equity and that no one may now qualify to buy or finance home purchases, it is a welcome note that in reality, their pessimism may be wrong. The housing industry is expected to pick up soon and is expected to be further motivated by the ray of hope beamed by this piece of news.
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