Total U.S. home equity reached a record high of $27.8 trillion, according to the Federal Reserve. The Fed reported that home equity increased by almost 20 percent in the first quarter of the year amid a booming housing market.
The record setting home equity figures come as housing market prices skyrocket. The surge in prices, coupled with broader high inflation rates, has made it more difficult for people to use their equity, but on the other hand, it has bolstered the finances of Americans who already own houses.
Source: Wall Street Journal
Mortgage Rates Jump toward 7 percent
Mortgage rates increased to their highest level since November 2022, the last time rates broke seven percent. Incoming data suggest that inflation is softening, falling to its lowest annual rate in more than two years. However, increases in housing costs, which account for a large share of inflation, remain stubbornly high, mainly due to low inventory relative to demand.
