Software company Black Knight says from June to July home prices fell 0.77%, the biggest drop since January 2011. According to CNBC, homeowners continue to lose their wealth as a result of higher mortgage rates and a cooled-down housing market.
Now that doesn’t mean that if you own a home you don’t still have some equity in it. Black Knight’s report goes on to say what they call tappable equity, the amount a homeowner can borrow against while keeping 20% equity in their home, hit its 10th consecutive quarterly record high at $11.5 trillion. But that may have peaked in May.
Compared with the mortgage crash of 2007, homeowners are still much better off. You may remember many people owed more than their houses were worth during the subprime mortgage loan crisis.
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