Topics

Posted 9/7/2023, 2:55:22 PM

'House-rich' Americans are sitting on nearly $30 trillion in home equity. Here's how to tap it

Homeowners are sitting on nearly $30 trillion in home equity due to rising housing prices. This equates to around $200,000 in equity per homeowner that can potentially be tapped.
With high mortgage rates, borrowers are less likely to tap equity through cash-out refinancing and more likely to use home equity loans or HELOCs.
HELOCs allow homeowners to borrow against home equity as a revolving line of credit with better rates than credit cards.
Home equity loan rates average under 10% nationwide, though terms vary. Defaulting can have serious consequences like losing your home.
Shop around and weigh all costs and risks before deciding if tapping home equity makes sense for your situation.

cnbc.com

Relevant topic timeline:

8/21/2023

These Are the Sunbelt Markets Where Multifamily Owners Face the Most Financial Risk

Over $1 trillion in commercial real estate debt will mature in the next two years, and some borrowers may have to sell assets due to limited lending sources, with smaller property owners being at higher risk.

8/22/2023

Americans now need to spend 43% of their income to afford a home as mortgage rates surge to a 23-year high

The average American now needs to spend 43% of their income to afford a home, as mortgage rates soar to their highest levels since 2000, reducing housing affordability and causing a decrease in housing supply.

8/24/2023

Mortgage rates surge to 22-year high

Mortgage rates in the US climbed to a 22-year high, surpassing 7%, which is posing significant challenges for first-time homebuyers and exacerbating the wealth gap between homeowners and renters.

8/25/2023

How a home mortgage 'lock in' impacts the entire housing market

The average mortgage rate in the U.S. has surpassed 7% for the first time in over two decades, leaving homeowners feeling trapped by their low interest rates.

8/27/2023

'It wouldn't take much for us to drop into the red': Growing number of Australians facing mortgage stress

Australians are facing increasing mortgage stress, with 1.5 million borrowers at risk, as the number of households falling behind in repayments rises, indicating a growing cost-of-living crisis and potential financial challenges ahead.

8/31/2023

To fix broken mortgage markets, look to Denmark

Summary: Rising interest rates have revealed issues in home loan markets, causing stagnation in housing markets and difficulties for borrowers in countries like the US, UK, Sweden, and New Zealand, highlighting the value of the Danish system of long-term fixed-rate mortgages with prepayable options and flexible transferability.

8/31/2023

US homeowners are sitting on $28.7 trillion of equity

US homeowners have a total home equity of $28.7 trillion, meaning an average of $334,000 of equity per owner-occupied housing unit, which could provide financial stability as savings decrease.

9/6/2023

The share of Americans paying over $2,000 a month for a mortgage has nearly tripled in just 2 years

The percentage of Americans paying $2,000 or more per month for a home mortgage has increased significantly in the past two years, with 51% of homebuyers facing these high payments in July 2023, compared to 18% in 2021, according to data from Black Knight. Additionally, nearly a quarter of homebuyers now have mortgage payments above $3,000, highlighting the unaffordability of the housing market for many Americans.

9/27/2023

Rising Debt Among Older Americans Raises Concerns, With Most Growth Coming from High-Risk Groups

A recent study found that the growth in debt among older households is concerning and a diverse range of policy responses are needed to address the financial vulnerability of high-risk borrowers.

10/5/2023

Mortgage Rates Hit Highest Level in a Generation, Slamming Housing Market

US mortgage rates have risen to 7.49%, making homeownership more difficult for potential homebuyers due to high costs and low inventory.

10/5/2023

Mortgage Rates Hit 22-Year High, Driving Monthly Payments Up and Housing Demand Down

The average long-term U.S. mortgage rate has reached its highest level since December 2000 at 7.49%, making home financing even more costly and decreasing affordability for potential buyers.

Topics

Posted 9/7/2023, 2:55:22 PM

'House-rich' Americans are sitting on nearly $30 trillion in home equity. Here's how to tap it

Homeowners are sitting on nearly $30 trillion in home equity due to rising housing prices. This equates to around $200,000 in equity per homeowner that can potentially be tapped.
With high mortgage rates, borrowers are less likely to tap equity through cash-out refinancing and more likely to use home equity loans or HELOCs.
HELOCs allow homeowners to borrow against home equity as a revolving line of credit with better rates than credit cards.
Home equity loan rates average under 10% nationwide, though terms vary. Defaulting can have serious consequences like losing your home.
Shop around and weigh all costs and risks before deciding if tapping home equity makes sense for your situation.

cnbc.com

Relevant topic timeline:

8/21/2023

These Are the Sunbelt Markets Where Multifamily Owners Face the Most Financial Risk

8/22/2023

Americans now need to spend 43% of their income to afford a home as mortgage rates surge to a 23-year high

8/24/2023

Mortgage rates surge to 22-year high

Mortgage rates in the US climbed to a 22-year high, surpassing 7%, which is posing significant challenges for first-time homebuyers and exacerbating the wealth gap between homeowners and renters.

8/25/2023

How a home mortgage 'lock in' impacts the entire housing market

The average mortgage rate in the U.S. has surpassed 7% for the first time in over two decades, leaving homeowners feeling trapped by their low interest rates.

8/27/2023

'It wouldn't take much for us to drop into the red': Growing number of Australians facing mortgage stress

8/31/2023

To fix broken mortgage markets, look to Denmark

8/31/2023

US homeowners are sitting on $28.7 trillion of equity

US homeowners have a total home equity of $28.7 trillion, meaning an average of $334,000 of equity per owner-occupied housing unit, which could provide financial stability as savings decrease.

9/6/2023

The share of Americans paying over $2,000 a month for a mortgage has nearly tripled in just 2 years

9/27/2023

Rising Debt Among Older Americans Raises Concerns, With Most Growth Coming from High-Risk Groups

A recent study found that the growth in debt among older households is concerning and a diverse range of policy responses are needed to address the financial vulnerability of high-risk borrowers.

10/5/2023

Mortgage Rates Hit Highest Level in a Generation, Slamming Housing Market

US mortgage rates have risen to 7.49%, making homeownership more difficult for potential homebuyers due to high costs and low inventory.

10/5/2023

Mortgage Rates Hit 22-Year High, Driving Monthly Payments Up and Housing Demand Down

The average long-term U.S. mortgage rate has reached its highest level since December 2000 at 7.49%, making home financing even more costly and decreasing affordability for potential buyers.