Summary
Tappable equity – the amount available for homeowners to access while retaining at least 20% equity in their homes – has risen by 32% over the past year, an increase of $2.3 trillion since Q3 2020
Skyrocketing home values over the past 18 months have increased the average mortgage holder’s equity stake by $53,000, for an average of just under $178,000 in available equity per homeowner
Rising equity stakes have pushed the average homeowner’s combined mortgage debt down to just 45.2% of their home’s value, the lowest average combined loan-to-value (CLTV) ratio on record
While the rate of home price growth is slowing – decelerating in each of the past three months – appreciation remains robust, with supply shortages putting continued upward pressure on prices
The recent improvement in for-sale inventory has begun to stall out, with inventory shortages holding firm in each of the past three months
With home prices still climbing alongside rising interest rates, the monthly principal and interest payment required to purchase the average-priced home has increased by 24% since the start of the year
It now takes 22.4% of the median household income to make the average monthly mortgage payment, up from 18.1% at the beginning of 2021 and the most since late 2018 when 30-year rates were near 5%
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