Skip to main content

Tappable Equity Down for Second Straight Quarter

Phil Hall
Apr 01, 2019
Although refinancing activity has soared by 94 percent since hitting an 18-year low in the fourth quarter of 2018, refinance retention rates fell by three percentage points to 26 percent in the third quarter of this year

Tappable equity, which is the amount available for homeowners with mortgages to borrow against before hitting a maximum 80 percent combined loan-to-value ratio, declined by $229 billion from the third to the fourth quarter of 2018, according to new data from Black Knight Inc. This marks the second consecutive quarter of declines.
 
Tappable equity reached a high of just over $6 trillion in the second quarter of 2018, but ended 2018 at $5.7 trillion. The primary source of this decline was California, where the average home price fell by $14,600 over the last six months of 2018. Black Knight added that California accounted for more than 60 percent of the total national reduction.
 
“The fact is, homeowners have been tapping equity less and less,” said Ben Graboske, President of Black Knight’s Data & Analytics division. “In the fourth quarter of 2018, equity withdrawals were down 16 percent year-over-year. Just $61 billion in equity–slightly more than one percent of all available tappable equity–was withdrawn via cash-out refinances or HELOCs, the smallest share of available equity withdrawn since the housing recovery began in 2012. HELOC volumes have been on the decline for the better part of three years now, as rising short-term rates made tapping equity via a line of credit more expensive.”

 
Published
Apr 01, 2019
DOJ: Lakeland Bank To Spend $13M To Settle 'Redlining' Claims

Agreement with N.J. bank is the third-largest redlining settlement in Justice Department history.

Industry News
Sep 29, 2022
Angel Oak Layoffs Add To Growing List Of Non-QM Cuts

About 20% of its staff, or 75 people, were affected.

Industry News
Sep 28, 2022
Redwood Trust Names New Chief Investment Officer

Also announces planned CoreVest leadership transition to be completed on 3rd anniversary of acquisition

Industry News
Sep 27, 2022
Fannie Mae Pilot Program Seeks To Help Improve Renters' Credit

Renters, including historically underserved groups, will benefit from paying on time each month.

Industry News
Sep 27, 2022
Suffolk County Data Breach Puts Contracts On Back Burner

Cyberattack beginning Sept. 8 prevents title services from closing loans.

Tech
Sep 27, 2022
Nations Lending Opens Another Branch In Arizona

New Scottsdale branch welcomes Arizona native Christine McConnell as lead personal mortgage advisor.

Industry News
Sep 26, 2022