Americans Sitting on Trillions in Tappable Equity

Posted To: MND NewsWire

Americans are sitting on a nearly unprecedented level of untapped wealth – or maybe sitting IN it is more to the point. A report from Black Knight notes the first quarter of this year saw the “tappable” equity Americans have in their homes rose at what could be a record pace. The company says tappable equity growth is a different metric than simple equity growth as it is the amount that homeowners can actually use. That is, it is the amount of a home’s value that can be borrowed against before reaching a combined loan-to-value (CLTV) ratio of 80 percent. Tappable equity grew by $380 billion in the first quarter of 2018. That 7 percent increase is the largest single quarter growth in Black Knight’s records, which go back to 2005. Equity growth is usually greatest in the first and second quarters…(read more)

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