Nominal terms may not be the best way to look at it. Here's a more intuitive visualization[1] of just how ridiculous the situation is. The at-a-glance takeawa

Nominal terms may not be the best way to look at it. Here's a more intuitive visualization[1] of just how ridiculous the situation is. The at-a-glance takeaway is that those who bought anytime from 2021 and today are, on average, almost certainly holding an illiquid bag that's even more overvalued than the inflation-adjusted peak of the housing bubble leading into the GFC. The original Black Knight press release[2] cited by the article highlights: > Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater and nearly 40% have less than 10% equity stakes in their home, a situation most concentrated among FHA/VA loans > More than 25% of 2022 FHA/VA purchase mortgage holders have now dipped into negative equity, with 80% having less than 10% equity In other words, low income and veteran home buyers. What I'd like to know is what percentage of these homes were financed with adjustable-rate mortgages...based on the implied trend, those people are liable to be sucking hind tit sooner than later. As for those with fixed-rate mortgages that are able to continue making payments, being underwater just means less future business for Black Knight...soon to be ICE's problem if/when the acquisition closes next year. [1] https://fred.stlouisfed.org/graph/?g=kYEb https://fred.stlouisfed.org/graph/?g=kYEb [2] https://www.blackknightinc.com/black-knights-october-2022-mortgage-monitor/ https://www.blackknightinc.com/black-knights-october-2022-mo...