From CNBC: 2024-11-04 12:22:34

U.S. homeowners have been hesitant to tap into their record equity due to higher interest rates, but in Q3 of this year, they withdrew $48 billion, the largest volume in two years. Despite $17 trillion in total equity, only 0.42% was withdrawn, less than pre-Fed hike rates. Homeowners typically use equity for home repairs and large expenses.

The average homeowner has $319,000 in equity, with $207,000 tappable. Over the past two years, the monthly payment needed for a $50,000 HELOC doubled, but the recent rate cut slightly reduced costs. With more rate cuts expected, the cost of withdrawals could fall below $300 per month, down over 25% from recent highs.

Home equity growth is slowing as home prices ease and more supply hits the market. Higher primary mortgage rates are reducing sellers’ pricing power, making it a challenging market for sellers. Despite homeowners sitting on record equity, they have been cautious in utilizing it due to interest rate fluctuations and economic uncertainty.



Read more at CNBC: More homeowners just started pulling cash out of their properties