Home Ownership Rates by Age
Median Borrower Equity 2006
Median Borrower Equity 2011
Bedian Borrower Equity 2017
Cash Out Refis Pick Up
Leveraging Wealth or Struggling to Pay Bills?
- 2006 originators were primarily levering up, with a small decline in average credit card balances, and piggybacks a large share
- 2017 originators’ credit reports show evidence of credit card and student loan consolidation
NY Fed Wrap-UP
- Home prices have recovered, but homeownership has not, especially for younger Americans, compounded by tight underwriting
- Housing wealth has shifted toward older, more creditworthy borrowers
- Equity extraction is relatively low now, considering potential uses to borrowers and high levels of tappable equity
- Congratulations, Fed, you blew another bubble in which new borrowers cannot afford homes.
- Cash-out refis have accelerated recently.
- The NAR constantly moans about lack of supply of homes. As boomers die off, supply will increase.
Mike "Mish" Shedlock