Here’s how much equity U.S. homeowners have lost since May
The historic run-up in home prices during the first two years of the pandemic gave home owner s record amounts of new home equity . Since May, however, about $1.5 trillion of that has vanished, according to Black Knight, a mortgage software and analytics company. The average borrower has lost $30,000 in equity. Home owner equity peaked at $17.6 trillion collectively last May, after home prices jumped 45% since the start of the pandemic. At the end of September, prices were still up 41%, and equity was still quite strong. Borrowers who bought their homes before the pandemic collectively have $5 trillion more than they did before the pandemic hit. That translates to a gain of $92,000 more equity per borrower than in February 2020. “While additional declines may be on the horizon, home owner positions remain broadly strong,” noted Ben Graboske, Black Knight’s president of data and analytics. But home prices began to weaken as mortgage rates rose in the spring, making it a lot less affo...