Home equity wealth in America is booming Dhara Singh
Homeowners enjoyed the largest year-over-year home equity gain in six years during the third quarter.
Americans with mortgages (roughly 63% of all properties) saw their home equity increase by an average of $17,000 between July and September 2020 as compared to the same quarter a year ago, according to a quarterly report from mortgage data and analytics firm CoreLogic.
Home equity for those homeowners rose by a total of $1 trillion over the year, with the average home equity in the U.S. sitting at $194,000 by the end of September.
“One of the biggest drivers of home equity is price growth over the last several months,” CoreLogic Chief Economist Dr. Frank Nothaft told Yahoo Money. “We saw a huge shortage of homes and the Federal Reserve dropping mortgage interest rates, which led to an acceleration of home prices.”