Talking Points …
- The aggregate home equity position of U.S. households has shown continued improvement. Household holdings of real estate totaled $21.826 trillion in the third quarter of 2015, $1.365 trillion higher than its level in the third quarter of 2014, , $20.461 trillion, according to the Federal Reserve’s Financial Accounts of the U.S.
- At the same time, home mortgage debt outstanding, $9.460 trillion in the third quarter of 2015, rose by $78.0 billion over the same 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 $1.286 trillion, 11.6 percent, to $12.366 trillion. Household’s home equity is now 56.7 percent of household real estate.