Markets & EconomyMortgage

Equity availability expands for homeowners

Owners with a mortgage have an average of $120,000 in 'tappable' equity

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Takeaways: Total home equity in the U.S. has reached an eight-year high. California is home to the highest volume of "tappable" equity. Growth in available equity could allow more borrowers to pull cash out. Total home equity in the U.S. has increased by nearly $1 trillion in the past year, reaching the highest level since 2007. When looking at the nation's population of mortgage holders and comparing first- and second-lien debt against May property values, the average American homeowner has about $19,000 more equity in their home today than a year ago, according to a recent Black Knight Financial Services’ report. Additionally, homeowners with a mortgage have nearly $168,000 more equity than at the beginning of 2015. This growth in available equity has direct implications for borrowers' ability to access the equity in their homes. “When we look at the amount of equity available on each home with a mortgage -- using an upper limit of 80 percent total...