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Average LTVs Down, Mortgages Outstanding Up

As the country’s book of home loans continues to grow, the average loan-to-value ratio continues to decline. Arkansas’ average LTV ratio exceeds all other states.

There was $9.185 trillion in U.S. mortgage debt outstanding as of the second-quarter 2016, more than a downwardly revised $9.109 trillion three months earlier.

The nation’s collective portfolio of residential loans also ascended from the same period one year earlier, when total mortgages outstanding came in at $8.926 trillion.

The statistics were provided in the Equity Report Second Quarter 2016 from CoreLogic Inc.

The average LTV ratio on U.S. financed homes was 56.0 percent as of the most-recent three-month period.

Average LTV ratios declined from an upwardly revised 57.2 percent in the first quarter and an upwardly revised 57.7 percent in the second-quarter 2015.

That put the dollar amount of homeowner equity at $7.203 trillion.

Arkansas’ second-quarter 2016 average LTV ratio was 70.2 percent — the highest in the nation.
Close behind was Oklahoma’s 69.1 percent, then Nebraska’s 67.7 percent, Nevada’s 66.6 percent and Ohio’s 66.3 percent.

At only 43.7 percent, Hawaii had the lowest LTV ratio of any state.

As of the second quarter of this year, there were 3.6 million U.S. properties with LTV ratios of at least 100 percent. That represented 7.1 percent of all financed homes.

There were 4.2 million negative-equity properties as of the prior quarter and 4.5 million a year prior.

The value of negative equity during the most-recent period was $284 billion.

Among homes valued at more than $200,000, those with positive equity accounted for 96 percent. But the share dropped to 89 percent for homes valued at less than $200,000.

Of the most-recent negative-equity properties, 2.2 million had a first lien with no home-equity loan. The average negative equity for these borrowers was $73,000.

Another 1.4 million negative-equity borrowers had a second lien with an average deficit of $88,000.

The number of financed properties with with positive equity stood at 47.2 million as of the second-quarter 2016.

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