Tappable home equity rises to a new record high

Here's how to tap into the cash in your home

Tappable equity increased in the second quarter as homeowners held significantly more cash in their home than last year.  (iStock)

Home equity increased in the second quarter, reaching yet another new high as home prices continue to rise, according to a new report from Black Knight.

Tappable homeowner equity, or the amount available for homeowners to access from their home while retaining at least 20% equity in their homes, hit an all-time high for the 10th consecutive month, according to Black Knight’s report. It increased to $11.5 trillion, up 5% or $500 billion from the first quarter and $2.3 trillion or 25% from the same time last year. 

"Equity growth slowed, however, as home price appreciation began to moderate, with some of the hottest markets even posting equity declines amid rising interest rates and affordability concerns," Black Knight said in its report. 

If you are interested in tapping into the equity in your home, consider a cash-out refinance. Visit Credible to find your personalized interest rate without affecting your credit score.


Homeowners have the most equity in these areas

Although equity increased overall in the second quarter, 11 of the nation’s top 50 most equity-rich markets decreased in equity. 

All of these markets are in the Western U.S. including eight metropolitan areas in California alone. Although these markets saw a decrease, California leads the U.S. in tappable equity with $3.5 trillion in equity or 30.5% of all tappable equity. California saw a decrease of $155 billion or 4.2% in the second quarter.

Four out of five of the most equity-rich markets were on the West Coast including San Jose, Seattle, San Francisco and Los Angeles which all saw a decrease in the second quarter.

If your home has a high level of equity and you are interested in pulling it out, consider a cash-out refinance to pay down debt or fund home improvements. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.


This is how much equity the average homeowner holds

As the overall level of equity continues to grow, homeowners are seeing higher levels of tappable equity in their home, according to Black Knight. 

The average homeowner held $216,900 in tappable equity in the second quarter. This is up 5% or $9,700 from the fourth quarter. From last year, this is up a full 25% or $43,400 from the second quarter of 2021.

Although homeowners are seeing record levels of home equity, 73% of this equity is held by borrowers who have a current mortgage rate below 4%. This could make borrowers more reluctant to refinance. However, many could turn to a second lien product such as a home equity line of credit (HELOC).

If you are interested in considering your options including lowering your mortgage payments, contact Credible to speak to a home loan expert and get all of your questions answered.

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