Items Tagged with 'Home equity'

ARTICLES

  • Homeowner "tappable equity" reaches an all-time high of $6.3 trillion

    Americans are sitting on a boatload of cash
    Tappable equity reached an all-time high of $6.3 trillion in the second quarter as home-price gains made real estate more valuable. The amount of equity homeowners could borrow against before hitting the 80% loan-to-value limit imposed by most lenders rose by $335 billion during the three-month period, according to Black Knight. The new record high is 26% above the 2006 peak in the midst of the housing bubble.
    Read More
  • FHA moves to limit cash-out refinances

    Lowers LTV requirements from 85% to 80%
    In the last several years, an increasing number of borrowers with loans backed by the Federal Housing Administration have been refinancing their mortgages to extract cash – a trend some have called concerning and risky. Now, the Department of Housing and Urban Development is taking steps to curb the prevalence of cash-out refinances, announcing Thursday that it’s lowering loan-to-value requirements.
    Read More
  • Quarter of homeowners can't define a HELOC

    Nearly half plan to renovate, but most won't use their home equity to finance it
    Nearly half of homeowners say they have plans to renovate their home in the next two years, and a third of those intend to drop $50,000 to do it. This is according to a recent survey from TD Bank, which highlights a major opportunity for lenders: A sizable number of homeowners can't define a HELOC.
    Read More
  • Harvard: Americans have more equity, less mortgage debt

    Equity levels double in last 7 years
    Americans now have nearly as much home equity as they did when levels peaked before the housing crisis, according to a recent study on the state of the nation’s housing market from Harvard’s Joint Center for Housing Studies. The report shows aggregate home equity climbed from $7 trillion in 2011 to $15.5 trillion in 2018.
    Read More
  • Home equity withdrawals fall to new low

    Homeowners tapped just 1% of available equity in Q1
    After declining for two consecutive quarters, tappable equity rose in the first quarter of the year, but it appears homeowners are still reluctant to touch it. According to the latest report from Black Knight, homeowners tapped just 1% of available equity in Q1 – the lowest share since it began tracking the metric in 2008.
    Read More
  • Baby Boomers creating "near-gridlock" by aging in place

    Boomers have become "a stick in the spokes" of the housing market, Chicago Tribune says
    Baby Boomers, the 75 million Americans born between 1946 and 1964, are clogging up the housing market, according to a Chicago Tribune story. Instead of moving to retirement communities, Baby Boomers are opting to age in place, keeping about 1.6 million houses off the market.
    Read More
  • Older homeowners are spending big on home improvements

    Harvard study says aging homeowners will drive this market
    Home improvement spending continues to trend upward, with the latest data from Harvard’s Joint Center for Housing Studies putting the aggregate total at a new high of $424 billion. The home improvement sector can thank the Baby Boomers for that, as research shows older homeowners are spending big on home renovations and aren't expected to slow down anytime soon.
    Read More
  • U.S. home values reach a record high of $26.1 trillion in Q1, Fed says

    Home equity rises to the highest level since 2002
    The value of all U.S. owner-occupied homes increased to a record $26.1 trillion in the first quarter, according to the Federal Reserve report released Thursday known as the Flow of Funds. Americans owned 60.4% of their homes in the first quarter, measuring the share of their home that was unmortgaged, the highest level of equity since 2002.
    Read More
  • Home equity gains continue to slow

    Homeowners see returns slip as home-price growth moderates
    The average homeowner gained $6,400 in home equity in 12 months’ time as of the first quarter of the year, according to the latest CoreLogic data. While on its face that might seem like a solid return for zero work, a brief look at historical gains reveals that, well, maybe not so much.
    Read More
  • Homeownership investment startup Hometap expands into new states

    Now available in 6 states, Hometap can help 20% of U.S. homeowners access their equity
    Homeownership investment startup Hometap has expanded into six states, the company announced Wednesday, making its services accessible to 20% of U.S. homeowners. Hometap founder and CEO Jeffrey Glass said the company aims to help those who are house rich but cash poor gain debt-free access to their home's equity.
    Read More