Quick Contact

Your Name (required)

Your Phone (required)

Your Email (required)

Your Message

Type this number below.

Record High Equity Thanks to Mortgage Credit Demographics

As the value of residential real estate rises with home prices, so has the owner's equity share of that value. Jing Fu, writing in the National Association of Home Builders' (NAHB Eye on Housing Blog, says that equity hit a new high in the first quarter of this year.

Fu uses figures from the Federal Reserve's Board of Governors' Financial Accounts of the U.S.  to show the overall nominal, non-seasonally adjusted value of owner-occupied housing units in the nation grew to $25.1 trillion during the quarter. This is an increase of $544 billion from the total in the fourth quarter of 2017 and $1.674 trillion more than the first quarter of last year.

At the same time, the growth of mortgage debt fell negative in 2008 and remained so until early 2015.  It has risen only modestly since then. Its was estimated at $10.1 trillion in Q1 2018, up $280 billion year-over-year. This enabled owners' equity, the difference between debt and value, to rise by $1.4 trillion since the first quarter of 2017, reaching $15.0 trillion, a new record high in the...

...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Comments are closed.