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.
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