by Calculated Risk on 12/09/2021 02:46:00 PM
Today, in the Real Estate Newsletter: The Home ATM in Q3 2021
For Q3 2021, the Net Equity Extraction was $147 billion, or 3.24% of Disposable Personal Income (DPI). The last two quarters have shown a sharp increase in equity extraction compared to recent years, but the level is nothing like the amount of equity extraction during the housing bubble as a percent of DPI. During the housing bubble we saw several quarters with MEW above 8% of DPI.
The bottom line is the recent increase in MEW is not concerning – it is far less as a percent of disposable personal income than during the bubble, and most homeowners have substantial equity.