U.S. Home Equity Hits Highest Level on Record—$27.8 Trillion
Abstract
Total U.S. home equity increased almost 20% in the first quarter to $27.8 trillion, a record high, according to the Federal Reserve. The increase is another consequence of a red-hot housing market. Double-digit price gains have driven some would-be homeowners out of the market. At the same time, rising home values are boosting the finances of the Americans who already own them. About 60% of equity was withdrawn. Homeowners are likely to turn to home-equity lines. The Fed is expected to raise rates. The rate on a 30-year fixed-rate mortgage averaged 5.23% near the beginning of this year to 5.13% near.23 percent near the start of June.
