Equity Soars To Record $11 Trillion
The recent surge in home prices pushed U.S. homeowners’ tappable equity to a record $11 trillion.
Prices were on a run in March, according to the ICE Home Price Index, up 1.2% and more than 25% above the 25-year average increase. This is the third straight month of above-average gains as stock shortages keep competition for limited homes high.
As a result, mortgage holders’ equity shot to a record $16.9T in Q1, $11T of which can be leveraged while retaining a 20% equity cushion, both of which are all-time highs.
“We’re still very much in a hole from an inventory perspective, but that deficit has fallen from 50% a year ago to 38% in March. Today, with 3.3 months of…