Tappable Equity Rises $1 Trillion in Q2 2021 Alone to Hit All-Time High of $9.1 Trillion; Quarter Also Sees Largest Volume of Cash-Out Refis in 15 Years

  • Driven by the red-hot housing market, tappable equity – the amount available to homeowners before reaching a maximum 80% combined loan-to-value (CLTV) ratio – surged nearly 40% from last year
  • At $9.1 trillion in total – yet another record high – the average mortgage holder now has $173,000 in tappable equity available to them, an increase of $20,000 from just the end of the first quarter
  • Fewer than 3% of mortgage holders have less than 10% equity – the lowest share ever observed – with the overall weighted average CLTV now 46%, the lowest mortgage-to-value leverage on record
  • Some 98% of borrowers in active forbearance have at least 10% equity, as compared to the Great Recession when 40% of all mortgage holders had less than 10% equity with 28% fully underwater
  • Even when adding 18 months of deferred principal, interest, taxes and insurance payments onto the total debt amount, only 7% of borrowers in forbearance would have less than 10% equity in their homes
  • More than $63 billion in equity was withdrawn via 1.1 million cash-out refinances originated in the second quarter, the largest quarterly volume since mid-2007

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