: The average American homeowner has nearly $200,000 in home equity, thanks to rising house prices

by | Aug 11, 2023 | Stock Market

Home buyers are feeling weighed down by how expensive it is to buy a home. But for those who already own their own property, their ability to tap their home’s rising equity has become a big boon. Homeowners’ equity hit $10.5 trillion in June, the fourth-highest month on record, up from $10.3 trillion in May, according to a Black Knight report released this week. (It reached $10.8 trillion at the end of 2022, a bumper year for house prices.)

The Black Knight Home Price Index has also reached a record high. The company’s data goes back to 2000. “Tappable” equity — what is available for homeowners to borrow against while maintaining a 20% equity stake — climbed to $10.5 trillion in June and is within $434 billion or 4% of the 2022 “tappable equity” peak. The average mortgage holder had $199,000 in equity in June, up from $185,000 in the first quarter of the year, Black Knight said. Some 14 million homeowners refinanced during the pandemic and secured ultra-low mortgage rates, the New York Fed said. Homeowners who refinanced over the last three years saved $42 billion cumulatively, Black Knight added.

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