By Michael Neal
Copyright © 2016 NATIONAL ASSOCIATION OF HOME BUILDERS
According to the Federal Reserve Board’s third quarter of 2016 release of its Financial Accounts of the United States report, household holdings of real estate, measured on a not seasonally adjusted basis, totaled $22.725 trillion in the third quarter of 2016, $1.520 trillion higher than its level in the third quarter of 2015, $21.204 trillion.
At the same time, home mortgage debt outstanding, $9.708 trillion in the third quarter of 2016, rose by $185 billion over the same four-quarter period. Since the total value of household-held real estate rose faster than the aggregate amount of mortgage debt outstanding, then home equity held by households grew.
Over the year, total home equity held by households grew by $1.336 trillion, 11.4 percent, to $13.018 trillion. Household’s home equity is now 57.3 percent of ... Read the article at the NAHB website