- Tappable equity - the amount available for mortgage holders to access while retaining at least 20% equity in their homes - increased by 35% in 2021, for an aggregate total of nearly $10 trillion
- The $2.6 trillion gain was the largest annual increase on record - more than double 2020's prior high of $1.1 trillion - giving the average homeowner a $48,000 bump for a total of $185,000 in available equity
- Rising equity stakes have also pushed the total market combined loan-to-value ratio below 45% for the first time on record - down from 50% at the same time last year
- While the rate of home price growth had been slowing since mid-summer, the trend has reversed course in recent months, with severe supply shortages putting continued upward pressure on prices
- After beginning to improve in the fall, inventory shortfalls began to intensify again in the final months of 2021, with the market currently facing a deficit of as many as 750,000 "missing" for-sale listings
- With prices still climbing alongside rising interest rates, the monthly principal and interest payment required to buy the average-priced home with 20% down has risen by 32% since the same time last year
- The mortgage payment on the average home purchase takes 25.8% of the median household income, surpassing the long-term, pre-Great Recession average (25%) to mark the worst affordability since 2008
PR Newswire
JACKSONVILLE, Fla., Feb. 7, 2022
