Tappable equity, defined as the share of equity available for homeowners with mortgages to borrow against before reaching a maximum total combined loan-to-value of 80 percent, reached a record high in the second quarter, according to data from Black Knight Inc.
The second quarter’s level of $6.3 trillion was up by more than $335 billion and marked second consecutive quarterly increase. The second quarter’s level was 26 percent above the mid-2006 peak of $5 trillion.
Black Knight also noted that 49 percent of the 45 million homeowners with tappable equity have first lien interest rates greater than 4.25 percent, which makes refinancing an appealing prospect. And 76 percent of these homeowners have rates at or above 3.75 percent.