by Calculated risk on 9/12/2022 12:26:00 PM
Today, in the Real Estate Newsletter: Mortgage Equity Pull Back Still Strong in Q2
Here is the quarterly increase in mortgage debt from the US Federal Reserve’s Z.1 (sometimes called Money Flow Report) financial accounts released on Friday. In the mid-2000s, there was a significant increase in mortgage debt associated with the housing bubble.
In the second quarter of 2022, mortgage debt increased by $263 billion, the most since 2006. Note nearly 7 years of lower mortgage debt as distressed sales (foreclosures and short sales) wiped out a significant amount of Debts.
However, some of this debt is used to increase home equity (purchasing new homes), so that’s not all about taking out mortgage equity (MEW).
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