Real Estate Economy Watch
The difficulties homeowners face today obtaining accurate valuations of their homes, and in turn, the equity they have in it, may be freezing many out of refinancing or selling because they error on the side of caution and make estimates that are too conservative.
A new analysis of Fannie Mae’s National Housing Survey by two economists at the University of California, Berkeley found homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes, and buying different homes.
