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Record Equity Hides Underwater Borrowers | Real Estate News

Homeowner equity hit a record $18 trillion—but behind the headline is a troubling trend: 813,000 borrowers now owe more than their homes are worth, up 44% from last year. FHA and VA loan holders who bought between 2022 and 2025 are most affected, especially in Texas and Florida where prices dipped. While home values surged 1.5% in July—the fastest growth in 14 months—rising interest rates threaten to cool that momentum. The big picture? Massive wealth for many, but growing financial distress for a vulnerable segment. Listen in comfort:Get a discount on a Soli Pillow…

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