Homeowners in the U.S. are sitting on a record amount of equity in their homes, according to the latest data. Black Knight reports that borrowers have amassed a new high of $9.4 trillion in tappable home equity or an average of $178,000 per homeowner.
Tappable equity is that amount of money a homeowner can take out of their property while still leaving a 20 percent cushion. As a result of the 32 percent year-over-year increase in tappable equity, there was a 14-year high in the number of homeowners who borrowed against their homes as of Q3 2021.
Currently, low mortgage rates make borrowing against a home’s equity comparatively affordable. Conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
